When transferring Development Rights for Checkersrallys, what is the minimum earnest money deposit required from the purchaser?

According to Checkersrallys's 2025 Franchise Disclosure Document, if a franchisee or owner desires to transfer development rights for legal consideration, they must obtain a bona fide, executed written offer along with an earnest money deposit from a responsible purchaser. The minimum earnest money deposit must be at least 5% of the offering price.

This requirement ensures that the offer to purchase the development rights is serious and that the purchaser has a genuine interest in acquiring those rights. The earnest money deposit serves as a form of security for Checkersrallys, indicating the purchaser's commitment to completing the transfer.

It is important to note that Checkersrallys retains the right of first refusal. This means that if the franchisee receives an offer to purchase the development rights, Checkersrallys has the option to match the offer and purchase the rights themselves. This provision allows Checkersrallys to maintain control over the development of its brand and ensure that any transfer aligns with its strategic objectives. The franchisee must provide Checkersrallys with a copy of the offer, triggering a 30-day period during which Checkersrallys can exercise its right of first refusal.