When must a Checkers franchisee obtain a non-disclosure and non-competition agreement from their Operating Partner?
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 their Operating Partner before employment or any promotion. The franchisee is also required to secure similar agreements from other individuals and entities associated with the franchise. These include owners with at least a 10% direct or indirect legal or beneficial ownership interest, officers, directors, managers, and individuals in equivalent positions within entities that own or control the franchisee.
The franchisee must procure all required Non-disclosure and Non-Competition Agreements no later than ten days following the Effective Date of the franchise agreement. If an individual or entity attains a status requiring an agreement after the Effective Date, the franchisee has ten days from the date the individual or entity attains that status to obtain the agreement.
Checkers requires that the franchisee furnish copies of all executed Non-disclosure and Non-Competition Agreements to Checkers within ten 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' confidential information, trade secrets, and goodwill associated with the brand and system.