Do Sections 13.06 and 13.02(h) or (j) apply to transfers of a Checkersrallys franchise to members of my Immediate Family or the Immediate Family of a current Owner?

According to Checkersrallys's 2025 Franchise Disclosure Document, Sections 13.06 and 13.02(h) or (j) do not apply to transfers of a franchise to members of your immediate family or the immediate family of a current owner. This means that the standard transfer conditions outlined in those sections are waived when transferring the franchise to immediate family members.

Section 13.06 typically gives Checkersrallys the right of first refusal if a franchisee desires to transfer the franchise for legal consideration. Section 13.02(h) usually requires the transferee to agree to upgrade, remodel, expand, and/or remodel the franchised restaurant according to Checkersrallys's current standards. Section 13.02(j) states that Checkersrallys must not disapprove of the material terms and conditions of such transfer (including the price and terms of payment) on the basis that they are so burdensome as to be likely to adversely affect the transferee's operation of the Franchised Restaurant or its compliance with its franchise agreements and any development agreements.

This waiver simplifies the transfer process to immediate family, potentially reducing costs and easing the burden of compliance. However, it is important to note that other transfer requirements outlined in Section 13 may still apply, and Checkersrallys's approval of the transfer is still required. A prospective franchisee should carefully review the full transfer section of the Franchise Agreement to understand all applicable requirements and consult with a legal professional to ensure compliance.