Which sections do not apply to transfers of a Checkersrallys franchise among current Owners?

According to Checkersrallys's 2025 Franchise Disclosure Document, certain sections regarding franchise transfers do not apply when the transfer occurs between current owners. Specifically, Section 13.06, concerning the franchisor's right of first refusal, and portions of Section 13.02, which outlines general conditions for approval, are waived in such cases. The specific parts of Section 13.02 that do not apply are subsections (a), (c), (f), and (h). These subsections cover requirements like the franchisee completing development and operating in accordance with the agreement, the transferee providing requested information and meeting approval standards, the transferee agreeing to be bound by the agreement, and the transferee agreeing to upgrade or remodel the restaurant.

This exemption simplifies the transfer process among existing owners, potentially making internal restructuring or ownership adjustments easier. However, it's important to note that all other transfer provisions still apply, ensuring Checkersrallys maintains oversight and control over the franchise's operation and brand standards. This also means that while some conditions are waived, the transfer still requires Checkersrallys's approval, and other conditions related to compliance, releases, and protection of Checkersrallys's rights remain in effect.

For a prospective franchisee, this information is relevant if they plan to co-own the franchise with partners. Understanding which transfer restrictions are eased among current owners can be beneficial for future business planning and potential ownership changes within the existing ownership structure. It is important to consult the full franchise agreement and seek legal counsel to fully understand the implications of these transfer provisions.