In the Checkersrallys Nondisclosure and Non-Competition Agreement, what agreement governs the relationship between the Franchisee and Franchisor?
Checkersrallys 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 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. |
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, the relationship between the franchisee and franchisor is governed by the Franchise Agreement. The Nondisclosure and Non-Competition Agreement is made between the individual (franchisee) and Checkers Drive-In Restaurants, Inc. (franchisor). The franchisee is operating under a franchise agreement concerning a franchised restaurant operating under the 'Marks'.
The franchised restaurant is authorized by Checkersrallys under the Franchise Agreement and is known as the 'Franchised Restaurant.' All capitalized terms within the Nondisclosure and Non-Competition Agreement derive their meanings as defined in the Franchise Agreement. This ensures consistency and clarity in interpreting both agreements.
This structure is typical in franchising, where a core franchise agreement establishes the primary obligations and rights, while ancillary agreements like the Nondisclosure and Non-Competition Agreement support and protect the franchisor's interests. Prospective Checkersrallys franchisees should carefully review both the Franchise Agreement and the Nondisclosure and Non-Competition Agreement to fully understand their contractual obligations and the relationship with Checkersrallys.