What activities are Checkers franchisees prohibited from engaging in that might be injurious to the goodwill associated with the Marks or the System?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
(b) perform services as a director, officer, manager, employee, consultant, representative, or agent for a Competitive Business, wherever located or operating;
(c) divert or attempt to divert any actual or potential business or customer of any Checkers or Rally's-branded restaurant to a Competitive Business; or
(d) engage in any other activity which, in our sole opinion, might be injurious or prejudicial to the goodwill associated with the Marks or the System.
6.03 Procurement of Additional Covenants.
You agree to require and obtain the execution of a non-disclosure and non-competition agreement, as we may require at our sole discretion, from all of the following persons:
(a) Before employment or any promotion, your Operating Partner; and,
(b) If you are a business entity, all Owners with at least a ten percent (10%) direct or indirect legal or beneficial ownership interest in you; all of your officers, directors and managers; and, all persons possessing equivalent positions in any business entity which directly or indirectly owns and/or controls you.
You shall procure all such Nondisclosure and
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to the 2025 Checkers Franchise Disclosure Document, franchisees are prohibited from certain activities that could harm the brand's goodwill. Specifically, a Checkers franchisee cannot act as a director, officer, manager, employee, consultant, representative, or agent for a competing business. This restriction applies regardless of where the competing business is located or operates.
Furthermore, Checkers franchisees are not allowed to divert or attempt to divert any actual or potential business or customers from any Checkers or Rally's-branded restaurant to a competing business. Additionally, franchisees must not engage in any other activity that Checkers, in its sole opinion, considers might be harmful or damaging to the goodwill associated with the Checkers Marks or the System.
Checkers also requires franchisees to ensure that their operating partner, and if the franchisee is a business entity, all owners with at least a 10% direct or indirect legal or beneficial ownership interest, officers, directors, and managers, sign a non-disclosure and non-competition agreement. These agreements must be obtained within ten days of the effective date or within ten days of an individual attaining a relevant status and copies must be provided to Checkers.