In the Checkers Nondisclosure and Non-Competition Agreement, where can I find the definitions of capitalized terms not specifically defined within the agreement itself?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
I agree that, unless otherwise specified, all capitalized terms in this Agreement have those meanings ascribed to them in the Franchise Agreement.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, the Nondisclosure and Non-Competition Agreement states that capitalized terms not specifically defined within that agreement have the meanings ascribed to them in the Franchise Agreement. This means that if a term is capitalized but not defined in the Nondisclosure and Non-Competition Agreement, a franchisee must refer back to the main Franchise Agreement to understand the term's definition.
For a prospective Checkers franchisee, this implies that understanding the Franchise Agreement is crucial for interpreting related documents like the Nondisclosure and Non-Competition Agreement. Franchisees should carefully review the Franchise Agreement and note the definitions of key terms, as these definitions will carry over into other agreements.
This approach is fairly common in franchising, as it avoids redundancy and ensures consistency across all legal documents governing the franchise relationship. However, it places the onus on the franchisee to cross-reference documents and maintain a clear understanding of how terms are defined and used throughout the franchise agreement and its related documents.