factual

What agreement is the Checkersrallys Operating Partner required to sign?

Checkersrallys Franchise · 2025 FDD

Answer from 2025 FDD Document

Your Operating Partner will be required to sign our Nondisclosure and Non-Competition Agreement, but we do not require manager-level employees to sign our Nondisclosure and Non-Competition Agreement.

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 the 2025 Checkersrallys Franchise Disclosure Document, if a franchisee is a business entity, the Operating Partner is required to sign the Checkersrallys Nondisclosure and Non-Competition Agreement. The Operating Partner is an individual designated by the business entity who must own and control at least 10% of the equity and voting rights, have the authority to make operational decisions, and have completed the Checkersrallys training program.

This requirement ensures that the individual primarily responsible for the restaurant's operations is bound by confidentiality and non-competition obligations to protect Checkersrallys's interests. This is a common practice in franchising to safeguard trade secrets and prevent competition from those with inside knowledge of the business.

Furthermore, Checkersrallys also requires the franchisee to obtain a non-disclosure and non-competition agreement from all owners with at least a ten percent (10%) direct or indirect legal or beneficial ownership interest, all officers, directors, and managers, and all persons possessing equivalent positions in any business entity which directly or indirectly owns and/or controls the franchisee. These agreements must be procured no later than ten (10) days following the Effective Date (or within ten days of attaining the status requiring the agreement) and copies must be furnished to Checkersrallys within ten days of execution.

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.