Who are the parties involved in the Nondisclosure and Non-Competition Agreement for Checkers?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
| THIS NONDISCLOSURE AND NON-COMPETITION AGREEMENT |
|---|
| (this "Agreement") is made as of the day of, 201, is by and |
| between ("Individual," "me," or "I") and |
| CHECKERS DRIVE-IN RESTAURANTS, INC., a Delaware corporation |
| ("Franchisor"). |
| ("Franchisee") is a franchisee of Franchison |
| pursuant to a franchise agreement entered into by those parties concerning a |
| franchised restaurant operating, or to be operated, under the Marks at |
| (the "Franchise Agreement"). The franchised |
| restaurant authorized by Franchisor under the Franchise Agreement is known as |
| the "Franchised Restaurant," which Franchised Restaurant is one among all |
| restaurants that Franchisor owns, operates, or franchises under the Marks. 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 the 2025 Checkers Franchise Disclosure Document, the Nondisclosure and Non-Competition Agreement is made between the "Individual," also referred to as "me," or "I," and Checkers Drive-In Restaurants, Inc., identified as the "Franchisor". The agreement also mentions a "Franchisee," who operates under a franchise agreement with Checkers.
This agreement is crucial for protecting Checkers' confidential information, trademarks, and overall goodwill. The individual signing the agreement commits to not divulging confidential information or engaging in activities that could harm Checkers' business interests. This includes not diverting business to competitors or reproducing any confidential materials.
Furthermore, the agreement specifies that during the term of employment, service, association, or ownership participation, the individual is prohibited from engaging or participating in any Competitive Business. A Competitive Business is defined as any restaurant or food-service provider deriving more than 20% of its revenue from selling hamburgers, cheeseburgers, and hot dogs in a fast-food format, or those who grant franchises or licenses to others to operate a similar business. However, the agreement does allow for owning less than 5% of a publicly traded Competitive Business for investment purposes, provided the individual or franchisee does not control the company.
Checkers also requires franchisees to obtain this agreement from their Operating Partner, all Owners with at least a 10% ownership interest, officers, directors, managers, and individuals in equivalent positions within entities that own or control the franchisee. These agreements must be secured within ten days of the effective date or when an individual attains a relevant status, with copies furnished to Checkers within ten days of execution. This ensures broad protection of Checkers' interests across various levels of involvement with the franchise.