Is a manager-level employee at Checkers required to sign a Nondisclosure and Non-Competition Agreement?
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 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, franchisees are generally required to have certain employees sign a Nondisclosure and Non-Competition Agreement. Specifically, Checkers requires franchisees to obtain this agreement from their Operating Partner before employment or promotion. If the franchisee is a business entity, all officers, directors, and managers must also sign the agreement. This requirement also extends to individuals holding equivalent positions in any entity that directly or indirectly owns or controls the franchisee.
The franchisee must secure these agreements within ten days of the effective date of the franchise agreement or within ten days of an individual attaining a covered position. Copies of the executed agreements must be provided to Checkers within ten days of their execution. This ensures that Checkers can enforce these agreements to protect its confidential information and business interests.
The Nondisclosure and Non-Competition Agreement prevents individuals from engaging in activities that could harm Checkers' business. This includes working for a competing business, diverting customers, or any action that could damage the goodwill associated with the Checkers brand. The agreement applies both during the term of employment and after its termination, safeguarding Checkers' interests over the long term.