What personnel of a Checkersrallys franchisee are required to sign nondisclosure agreements?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
by certified check. However, your failure to pay all amounts when due constitutes grounds for termination of this Agreement, as provided in Section 14.
7. RESTRICTIVE COVENANTS.
7.01 Confidential Information.We will disclose parts of our Confidential Information to you solely for your use in the operation of the Franchised Restaurant. The Confidential Information is proprietary and includes our trade secrets. During and after the Term: (a) you may not use the Confidential Information in any other business or capacity (as you hereby acknowledge that such prohibited use would be an unfair method of competition); (b) you must exert your best efforts to maintain the
confidentiality of the Confidential Information, regardless of its format or medium of transmission to you; (c) you may not make unauthorized copies of any portion of the Confidential Information; and (d) you must implement all commercially reasonable procedures we prescribe at any time and from time to time to prevent unauthorized use or disclosure of the Confidential Information, including requiring any of your personnel who attends training or who has the ability to access our Confidential Information, to sign nondisclosure agreements in a form we prescribe or approve and delivering those agreements to us.
- 7.02 In-Term Covenants.You acknowledge that we have granted you the franchise in consideration of, and reliance upon, your agreement to deal exclusively with us.
Source: Item 23 — RECEIPTS (FDD pages 92–384)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, franchisees are required to ensure certain personnel sign nondisclosure agreements. Specifically, franchisees must require their managers and assistant managers, along with any other personnel who attend training or have the ability to access Checkersrallys's confidential information, to sign these agreements. The form of the nondisclosure agreement must be prescribed or approved by Checkersrallys, and the signed agreements must be delivered to Checkersrallys.
Additionally, Checkersrallys requires franchisees to obtain non-disclosure and non-competition agreements from specific individuals before their employment or promotion. This includes the Operating Partner. If the franchisee is a business entity, 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 must also sign these agreements.
The franchisee is responsible for procuring these agreements no later than ten (10) days following the Effective Date of the franchise agreement. If an individual attains a relevant status after the Effective Date, the franchisee has ten (10) days after that status is attained to procure the agreement. Copies of all executed Nondisclosure and Non-Competition Agreements must be furnished to Checkersrallys within ten (10) days following their execution. This ensures that Checkersrallys's confidential information and competitive advantages are protected by legally binding agreements with key personnel and stakeholders within the franchise operation.