In the Checkers Development Agreement, what representations do franchisees make regarding other agreements?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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
Non-Competition Agreements no later than ten (10) days following the Effective Date (or, if any individual or entity attains any status identified above after the Effective Date, within ten (10) days after such individual or entity's attains such status) and shall furnish to us copies of all executed Nondisclosure and Non-Competition Agreements within ten (10) days following their execution.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
Based on the 2025 Checkers Franchise Disclosure Document, franchisees are required to ensure that certain individuals associated with their business sign non-disclosure and non-competition agreements. Specifically, the franchisee must obtain these agreements from their Operating Partner before employment or promotion. If the franchisee is a business entity, these agreements must be secured from all owners with at least a ten percent (10%) direct or indirect legal or beneficial ownership interest, all officers, directors, and managers, and all individuals holding equivalent positions in any entity that directly or indirectly owns or controls the franchisee.
The franchisee is obligated to procure these Non-disclosure and Non-Competition Agreements within ten (10) days of the Effective Date of the Development Agreement. If an individual or entity attains a relevant status after the Effective Date, the franchisee has ten (10) days from the date the individual or entity attains that status to secure the agreement.
Furthermore, the franchisee must provide Checkers with copies of all executed Non-disclosure and Non-Competition Agreements within ten (10) days of their execution. This requirement ensures that Checkers has documentation confirming compliance with the non-disclosure and non-competition obligations of key personnel and owners associated with the franchise.