Following the effective date of a Checkersrallys franchise transfer, for how long will I (and my Immediate Family) be prohibited from engaging in activities proscribed in Section 16.03?

According to Checkersrallys's 2025 Franchise Disclosure Document, if you transfer your franchise, you and your Immediate Family are restricted from engaging in activities outlined in Section 16.03 for a period of two years, beginning on the effective date of the transfer.

Section 16.03, as detailed in the FDD, specifies post-term covenants that restrict you from involvement with competitive businesses. This includes owning, rendering services, or giving advice to any Competitive Business operating at the Premises or within a three-mile radius of the Premises, or within a three-mile radius of any other Checkers or Rally's restaurant. It also includes involvement with any entity that grants franchises or licenses to operate any Competitive Business.

This restriction is in place to protect Checkersrallys's interests in its system, customer base, and brand goodwill. By agreeing to this non-compete clause, you acknowledge that Checkersrallys has a legitimate legal interest in safeguarding these assets. The FDD also states that you possess general skills and abilities that can be exploited in other ways, ensuring that the enforcement of these covenants will not deprive you of your ability to earn a living after the franchise transfer.