Does the Checkers non-compete agreement prohibit contact with customers of Checkers Restaurants after the termination or expiration of employment, service, association, or ownership participation?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon the expiration or other termination for any reason of my employment, association, service or ownership participation, I agree:
(i) to return immediately to Franchisor or Franchisee, as the case may be, all Confidential Information, and any material(s) containing a subset thereof, in my possession that was utilized, or to which I had access,
- during my employment, association, service or ownership participation;
- (ii) to refrain, beginning upon such expiration or termination and forever thereafter, from any and all contacts with customers of Restaurants for any purpose whatsoever; and
- (iii) for a period of two (2) years, starting on the effective date of termination or expiration of my employment/service/association or ownership participation, to refrain from directly or indirectly (such as through any one or more of my spouse, legally-recognized domestic partner, parents, children or sibling(s) (collectively, "Immediate Family")) owning a legal or beneficial interest in, or render services or give advice to: (a) any Competitive Business operating at the Premises or within a three (3)-mile radius of the Premises; (b) any Competitive Business operating within a radius of three (3) miles of any Restaurant in operation or under construction on the effective date of termination or expiration of my employment/service/association/ ownership participation; or (c) any entity which grants franchises, licenses or other interests to others to operate any Competitive Business.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to the 2025 Checkers Franchise Disclosure Document, upon the expiration or termination of employment, association, service, or ownership participation, individuals are required to refrain from any contact with Checkers customers. Specifically, the agreement states that beginning upon such expiration or termination and forever thereafter, the individual must abstain from any and all contacts with customers of Restaurants for any purpose whatsoever.
This provision means that a former franchisee, employee, or associate of a Checkers franchise is permanently prohibited from contacting Checkers customers for any reason after their relationship with the franchise ends. This restriction is comprehensive, covering all forms of contact and purposes, ensuring that former affiliates cannot leverage their previous connections to solicit customers or otherwise compete with Checkers.
The FDD also states that Checkers has a protectable legal interest in the customers of Restaurants and the goodwill associated with the Marks. This suggests that Checkers views customer relationships as a key asset and seeks to protect them through these non-compete and non-solicitation agreements. Prospective franchisees should be aware of the breadth and duration of this restriction, as it could impact their future business activities, especially if they remain in the same geographic area after leaving the Checkers system.