Can Checkersrallys require a transferee to execute the current standard franchise agreement?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
- (f) the transferee (and its owners) must agree to be bound by all of the provisions of this Agreement for the remainder of its term or, at our option, execute our then current standard form of franchise agreement and related documents used in the state in which the Franchised Restaurant is located (which may provide for different royalties, advertising contributions and expenditures, duration and other rights and obligations than those provided in this Agreement and which we may require to be guaranteed by you and your Owners);
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, Checkersrallys has the option to require a transferee to execute the then-current standard form of franchise agreement.
Specifically, Checkersrallys can require the transferee to agree to be bound by all the provisions of the original franchise agreement for the remainder of its term. Alternatively, Checkersrallys has the option to require the transferee to execute Checkersrallys's then-current standard form of franchise agreement and related documents used in the state in which the Franchised Restaurant is located.
This new franchise agreement executed by the transferee may provide for different royalties, advertising contributions and expenditures, duration, and other rights and obligations than those provided in the original agreement. Checkersrallys may also require that the original franchisee and their owners guarantee the obligations under this new franchise agreement.