Under what conditions does Checkersrallys require a general release from the franchisee (and their owners)?
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 or agreeing to a request made by the franchisee. This is part of the Franchise Agreement between Checkersrallys and the franchisee.
In practical terms, this means that if a franchisee asks Checkersrallys to take a certain action, such as renewing or transferring the franchise agreement, Checkersrallys can require the franchisee (and their owners) to sign a release and covenant not to sue as a condition of Checkersrallys agreeing to the franchisee's request. This release serves as partial consideration for Checkersrallys's willingness to proceed with the requested action.
However, the FDD also includes addenda for franchisees in Maryland and Minnesota that place restrictions on these releases. For Maryland franchisees, any general releases signed will not apply to the extent prohibited by the Maryland Franchise Registration and Disclosure Law. For Minnesota franchisees, Checkersrallys is prohibited from requiring a general release under Minn. Rule 2860.4400D. Additionally, acknowledgements or representations of the franchisee requiring assent to a release, estoppel, or waiver of liability are not intended to act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law.