From whom must a Checkers franchisee obtain a non-disclosure and non-competition agreement?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
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)
According to Checkers's 2025 Franchise Disclosure Document, a franchisee must obtain a non-disclosure and non-competition agreement from specific individuals associated with the franchise. These individuals include the Operating Partner before their employment or promotion. If the franchisee is a business entity, agreements are required 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 persons possessing equivalent positions in any business entity that directly or indirectly owns or controls the franchisee.
The franchisee is responsible for procuring these agreements no later than ten (10) days following the Effective Date of the franchise agreement. If an individual or entity attains any of the aforementioned statuses after the Effective Date, the agreement must be obtained within ten (10) days of them attaining that status.
Checkers requires that the franchisee furnish copies of all executed Non-disclosure and Non-Competition Agreements within ten (10) days following their execution. This ensures that Checkers has a record of these agreements and can enforce them if necessary. This requirement is in place to protect Checkers's confidential information, trade secrets, and competitive advantage.