Under what conditions do Sections 7.06 and 7.2(f) NOT apply to a transfer of Checkersrallys Development Rights?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.04 Special Transfers. Neither Section 7.06 nor Section 7.2(f) apply to any transfer of the Development Rights among any of your then current Owners or to any transfer of the Development Rights to any member of your Immediate Family or the immediate family of a then current Owner of Area Franchisee (if you are a corporation, partnership, limited liability company or other legal entity).
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, Sections 7.06 and 7.2(f) do not apply to specific types of transfers of the Development Rights. These exceptions are designed to accommodate internal restructuring or transfers within the franchisee's immediate family.
Specifically, these sections do not apply to transfers among the current owners of the franchise or to transfers to a member of the owner's immediate family. This applies if the franchisee is an individual, partnership, corporation, limited liability company, or other legal entity. This provision allows for flexibility in managing ownership and succession within the existing franchise structure without triggering the standard transfer approval processes.
This exception is important for Checkersrallys franchisees because it simplifies the process of transferring rights within the family or among existing owners. However, it's crucial to note that any other type of transfer would still be subject to the standard approval processes and conditions outlined in the franchise agreement.