Following the effective date of a Checkersrallys franchise transfer, for how long are I and my Immediate Family restricted 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 proscribed in Section 16.03 for a period of two years. This two-year restriction begins on the effective date of the franchise transfer.

Section 16.03 likely contains covenants related to post-term non-compete obligations. This means that for two years after you sell your Checkersrallys franchise, you and your immediate family cannot own, operate, or be involved with a competing business as defined in Section 16.03. The restrictions probably include limitations based on geographic proximity to existing Checkersrallys locations.

This type of restriction is common in franchise agreements to protect the brand and prevent former franchisees from using their knowledge of the Checkersrallys system to benefit a competitor. Prospective franchisees should carefully review Section 16.03 to fully understand the scope of these restrictions and how they might impact future business opportunities after selling their Checkersrallys franchise.