For Checkersrallys, within how many days of the Effective Date must a franchisee procure Nondisclosure and Non-Competition Agreements?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.04 Procurement of Additional Covenants.You agree to require and obtain the execution of our Nondisclosure and Non-Competition Agreement (Exhibit D) from all of the following persons:
- (a) Before employment or any promotion, your Operating Partner; and,
- (b) If you are a business entity, all Owners with at least a ten percent (10%) direct or indirect legal or beneficial ownership interest in you; all of your officers, directors and managers; and, all persons possessing equivalent positions in any business entity which directly or indirectly owns and/or controls you. You shall procure all such Nondisclosure and Non-Competition Agreements no later than ten (10) days following the Effective Date (or, if any individual or entity attains any status identified above after the Effective Date, within ten (10) days after such individual or entity's attains such status) and shall furnish to us copies of all executed Nondisclosure and Non-Competition Agreements within ten (10) days following their execution.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, franchisees must procure Nondisclosure and Non-Competition Agreements within a specific timeframe. Specifically, the franchisee is required to obtain these agreements from their Operating Partner before employment or any promotion. If the franchisee is a business entity, agreements must be secured from all Owners with at least a ten percent direct or indirect legal or beneficial ownership interest, all officers, directors, and managers, and all persons possessing equivalent positions in any business entity that directly or indirectly owns or controls the franchisee.
The critical deadline for securing these agreements is no later than ten days following the Effective Date of the franchise agreement. If an individual or entity attains any of the aforementioned statuses after the Effective Date, the franchisee has ten days from the date the individual or entity attains such status to procure the necessary agreements.
Furthermore, Checkersrallys requires that the franchisee furnish copies of all executed Nondisclosure and Non-Competition Agreements within ten days following their execution. This requirement ensures that Checkersrallys has a record of all individuals and entities bound by these agreements, which protect the brand's confidential information and competitive interests.