factual

According to the Checkersrallys Nondisclosure and Non-Competition Agreement, what is the defined relationship between the 'Individual' and the 'Franchisor'?

Checkersrallys Franchise · 2025 FDD

Answer 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 Franchisor
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.

17. RELATIONSHIP OF THE PARTIES.

17.01 Independent Contractors.

Neither this Agreement nor the dealings of the parties pursuant to this Agreement shall create any fiduciary relationship or any other relationship of trust or confidence between the parties hereto. Franchisor and Franchisee, as between themselves, are and shall be independent contractors.

We and you acknowledge and agree that this Agreement (and the relationship of the parties which arises from this Agreement) grants us the right to make decisions, take actions and/or refrain from taking actions not inconsistent with your explicit rights and obligations hereunder that may affect favorably or adversely your interests. You understand and agree that we may operate and change the System and our business in any manner that is not expressly and specifically prohibited by this Agreement. Whenever we have reserved in this Agreement a right and/or discretion to take or withhold an action, or to grant or decline to grant you a right to take or withhold an action, except as otherwise expressly and specifically provided in this Agreement, we may make our decision or exercise our right and/or discretion on the basis of our judgment of what is in our best interests, including our judgment of what is in the best interests of our franchise network, at the time our decision is made, without regard to: (a) whether other reasonable or even arguably preferable alternative decisions or actions could have been made by us; (b) whether our decision or the action we take promotes our financial or other individual interest; (c) whether our decision or the action we take applies differently to you and one (1) or more other franchisees; or (d) whether our decision or the exercise of our rights is adverse to your individual interests or the individual interests of any other particular franchisees. We will have no liability to you for any such decision or exercise of our rights.

Nothing contained in this Agreement, or arising from the conduct of the parties hereunder, is intended to make either party a general or special agent, joint venturer, partner or employee of the other for any purpose whatsoever. You must conspicuously identify yourself in all dealings with customers, lessors, contractors, suppliers, public officials, employees and others as the owner of the Franchised Restaurant and must place such other notices of independent ownership on such forms, business cards, stationery, advertising and other materials as we may require at any time and from time to time.

Source: Item 22 — CONTRACTS (FDD pages 91–92)

What This Means (2025 FDD)

According to Checkersrallys's 2025 Franchise Disclosure Document, the Nondisclosure and Non-Competition Agreement defines the 'Individual' as entering the agreement with Checkers Drive-In Restaurants, Inc., the 'Franchisor'. The 'Individual' is also referred to as 'me' in the agreement. The agreement is made as of a certain day in 201_. The 'Franchisee' is defined as a franchisee of Checkersrallys, operating under a franchise agreement. The franchised restaurant is among all restaurants that Checkersrallys owns, operates, or franchises. All capitalized terms in the agreement have the meanings ascribed to them in the Franchise Agreement.

Furthermore, the agreement explicitly states that neither the agreement nor the dealings of the parties create any fiduciary relationship or any other relationship of trust or confidence between the parties. Checkersrallys and the franchisee are independent contractors. Checkersrallys retains the right to make decisions and take actions that may affect the franchisee's interests, provided they are not inconsistent with the franchisee's explicit rights and obligations under the agreement.

Checkersrallys may operate and change the system and its business in any manner not expressly and specifically prohibited by the agreement. Whenever Checkersrallys has reserved a right or discretion to take or withhold action, it may do so based on its judgment of what is in its best interests, including the interests of its franchise network, without regard to whether other decisions could have been made, whether the decision promotes Checkersrallys's financial interest, whether the decision applies differently to different franchisees, or whether the decision is adverse to the franchisee's individual interests. Checkersrallys will have no liability to the franchisee for any such decision or exercise of its rights.

Finally, nothing in the agreement or arising from the conduct of the parties is intended to make either party a general or special agent, joint venturer, partner, or employee of the other for any purpose. The franchisee must identify themselves as the owner of the franchised restaurant in all dealings with customers, lessors, contractors, suppliers, public officials, employees, and others, and must place notices of independent ownership on forms, business cards, stationery, advertising, and other materials as Checkersrallys may require.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.