Under what circumstances does Checkersrallys require a general release from the franchisee as a condition of taking action or agreeing to a request?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
| Checkers Drive-In Restaurants, Inc. ("we," "us," or "our") and the undersigned |
|---|
| franchisee, ("you" or "your"), |
| currently are parties to a certain Franchise Agreement (the "Franchise Agreement") dated |
| You have asked us to take the following action or to agree to |
| the following request: [insert as appropriate for renewal or transfer situation] |
| . We have the right under the Franchise Agreement to obtain a general |
| release from you (and, if applicable, your owners) as a condition of taking this action or |
| agreeing to this request. Therefore, we are willing to take the action or agree to the request |
| specified above if you (and, if applicable, your owners) |
| give us the release and covenant not |
| to sue provided below in this document. You (and, if applicable, your owners) are willing to |
| give us the release and covenant not to sue provided below as partial consideration for our |
| willingness to take the action or agree to the request described above. |
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, Checkers Drive-In Restaurants, Inc. has the right to obtain a general release from the franchisee (and their owners, if applicable) as a condition of taking a specific action requested by the franchisee or agreeing to a request made by the franchisee. This is contingent on the franchisee (and their owners, if applicable) providing a release and covenant not to sue as consideration for Checkersrallys's willingness to act on the request.
For an Area Franchisee, the FDD states that they release Checkersrallys from all claims, demands, and causes of action known or unknown before the agreement date. The Area Franchisee also agrees not to initiate any legal actions against Checkersrallys related to any claim released under this section. This release extends to the Area Franchisee's affiliates, shareholders, directors, officers, members, managers, employees, successors, and assigns.
However, the FDD also includes some protections for franchisees. For example, the franchisee does not waive reliance on any representations made by Checkersrallys in their Franchise Disclosure Document. Additionally, in certain states like Minnesota, Checkersrallys is prohibited from requiring a general release from the franchisee. In New York, the franchisee retains all rights and causes of action arising from the provisions of Article 33 of the General Business Law of the State of New York.