Do Sections 13.06 and 13.02(a), (c), (f) or (h) apply to transfers of a Checkersrallys franchise among current Owners?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
- 13.04 Special Transfers.Neither Section 13.06 nor Section 13.02(a), (c), (f) or (h) shall apply to any transfer of the Franchise among any of your then current Owners.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, Sections 13.06 and 13.02(a), (c), (f), or (h) of the franchise agreement do not apply to transfers of a franchise among current owners. This means that current owners transferring the franchise between themselves are not subject to the franchisor's right of first refusal (Section 13.06) or the specific conditions for approval outlined in 13.02(a), (c), (f) and (h). These sections generally cover requirements like the franchisee being in good standing, the transferee meeting certain qualifications, and the transferee agreeing to upgrades or remodels.
This exemption simplifies the transfer process for existing owners, potentially making internal restructuring or ownership adjustments easier. However, it is important to note that other transfer provisions within Section 13 may still apply, and the transfer must still be approved by Checkersrallys.
Prospective franchisees should carefully review the entirety of Section 13 within the franchise agreement to fully understand the conditions and procedures governing franchise transfers, even among existing owners, to ensure full compliance and avoid any unintended breaches of contract.