Which sections do not apply to transfers of a Checkersrallys franchise to members of the Immediate Family of a current Owner?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
Neither Section 13.06 nor Section 13.02(h) or (j) shall apply to any transfer of the Franchise to any member of your Immediate Family or the Immediate Family of a then current Owner of Franchisee (if a business corporation, partnership, limited liability company or other entity).
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, certain sections regarding franchise transfers do not apply when transferring a franchise to an immediate family member. Specifically, Section 13.06 and Sections 13.02(h) or (j) are waived in such cases. This provides a more streamlined process for keeping the franchise within the family.
Section 13.06 likely pertains to Checkersrallys's right of first refusal, meaning the franchisor waives its right to purchase the franchise before it is transferred to the family member. Section 13.02 likely outlines general conditions for approval of a transfer, and subsections (h) and (j) detail specific requirements that are waived for family transfers.
This waiver of certain transfer requirements can be a significant benefit for Checkersrallys franchisees who wish to pass their business on to their children, spouses, or other close family members. It simplifies the transfer process and potentially reduces costs and administrative burdens. However, it is important to note that other transfer requirements may still apply, and the franchisor's approval is still required.