Under what conditions can I, as an individual or partnership, transfer my Checkersrallys franchise agreement to a corporation or limited liability company?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
On thirty (30) days' notice to us, you (if you are an individual or partnership) may transfer this Agreement, in conjunction with a transfer of all of the assets of the Franchised Restaurant, by an agreement in form and substance approved by us, to a corporation or limited liability company which conducts no business other than the Franchised Restaurant (and other Restaurants under franchise agreements granted by us), and of which you own and control all of the equity and voting power of all issued and outstanding capital stock.
None of the foregoing assignments shall relieve you or your Owners of your respective obligations hereunder, and you and your Owners remain jointly and severally liable for all obligations hereunder.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, as an individual or partnership, you may transfer your Franchise Agreement to a corporation or limited liability company under specific conditions. You must provide Checkersrallys with thirty (30) days' notice before the transfer. This transfer must occur alongside the transfer of all assets of the franchised restaurant.
The agreement to transfer must be in a form and substance that Checkersrallys approves. The corporation or limited liability company must exclusively conduct business related to the franchised restaurant and other Checkersrallys restaurants under franchise agreements granted by them.
Furthermore, you must own and control all equity and voting power of all issued and outstanding capital stock in the corporation or limited liability company. Even with this transfer, you and your owners will remain jointly and severally liable for all obligations under the Franchise Agreement.