What agreement is the Checkers Operating Partner required to sign?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Your Operating Partner will be required to sign our Nondisclosure and Non-Competition Agreement, but we do not require manager-level employees to sign our Nondisclosure and Non-Competition Agreement. Your manager-level employee is not required to own equity in you.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 64–65)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, if a franchisee is a business entity, they must designate an Operating Partner who meets specific requirements. This Operating Partner is required to sign Checkers' Nondisclosure and Non-Competition Agreement. This agreement likely contains provisions that protect Checkers' confidential information and prevent the Operating Partner from engaging in competitive activities during and after their association with the franchise.
This requirement ensures that individuals in key operational roles are bound by confidentiality and non-competition obligations, safeguarding Checkers' business interests. However, the FDD specifies that manager-level employees are not required to sign this agreement. This distinction suggests that Checkers places a higher level of responsibility and accountability on the Operating Partner due to their significant influence and decision-making authority within the franchise.
Prospective franchisees should carefully review the terms of the Nondisclosure and Non-Competition Agreement to understand the specific restrictions and obligations it imposes on their Operating Partner. Understanding the scope and duration of these restrictions is crucial for both the franchisee and the designated Operating Partner to ensure compliance and avoid potential legal issues. Franchisees should also inquire about any specific circumstances under which the agreement may be modified or waived.