If a Checkers franchisee is a business entity, which individuals are required to sign the Nondisclosure and Non-Competition Agreement?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
CHECKERS DRIVE-IN RESTAURANTS, INC., a Delaware corporation If a corporation, partnership, limited liability company or other legal entity: Print Name: Title: (Name of corporation, partnership, limited liability company or other legal entity) Print Name: Print Name: Print Name: If individuals: (Signature) (Print Name) (Signature) (Print Name) (Signature) (Print Name)
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to the 2025 Checkers Franchise Disclosure Document, if the franchisee is a corporation, partnership, limited liability company, or other legal entity, the agreement indicates that the "Name of corporation, partnership, limited liability company or other legal entity" should be printed. Additionally, there are spaces for printing the names of individuals and obtaining their signatures.
This implies that Checkers requires individuals associated with the business entity, such as officers, directors, or partners, to sign the Nondisclosure and Non-Competition Agreement. This is a common practice in franchising to ensure that the obligations of non-disclosure and non-competition extend beyond the business entity to the individuals who control or manage it. The agreement aims to protect Checkers' confidential information and competitive interests by preventing those individuals from engaging in activities that could harm the franchise system.
Prospective Checkers franchisees should carefully review the Nondisclosure and Non-Competition Agreement and understand who within their business entity will be required to sign it. It is important to ensure that all individuals who sign the agreement are aware of their obligations and the potential consequences of violating the agreement. Franchisees should consult with an attorney to fully understand the implications of the agreement and how it may affect their business and personal activities.