According to the Checkers franchise agreement, who owns the Marks?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
2.03 Our Reservation of Rights. Except as expressly limited by Section 2.02 above, we and our Affiliates (and our respective successors and assigns, by purchase, merger, consolidation or otherwise) retain all rights and discretion with respect to the Marks, the System, the sale of products and services similar or dissimilar to those offered by "Checkers" and "Rally's"-branded restaurants, and the operation or franchising of "Checkers" and "Rally's"-branded restaurants anywhere located or to be located, and may engage in any business activities whatsoever, within or outside the Protected Area, whenever and wherever we desire. Specifically, by way of example and without limitation, we reserve the following rights: (a) to establish and operate, and grant to others the right to operate, "Checkers" and "Rally's"-branded restaurants at locations outside the Protected Area, on such terms and conditions as we deem appropriate (you acknowledge that such "Checkers" and "Rally's"-branded restaurants may be in direct competition with your Franchised Restaurant, without regard to any adverse effects of such activities on your Franchised Restaurant and without any obligation or liability to you); (b) to establish and operate, and grant to others the right to operate, "Checkers" and "Rally's"branded restaurants, or other restaurants using any part or all of the System and/or Marks, that are located at or operated from Non-Traditional Sites within or outside the Protected Area; (c) to sell any products or services under the Marks or under any other trademarks, service marks or trade dress, through alternative channels of distribution, wherever located or operating (including, without limitation, the internet or similar electronic media and supermarkets); (d) to establish and operate, and grant to others the right to operate, restaurants identified by trademarks, service marks or trade dress, other than the Marks (including the INSERT BRAND: "Checkers"/"Rally's" name and mark), pursuant to such terms and conditions as we
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to the 2025 Checkers Franchise Disclosure Document, Checkers Drive-In Restaurants, Inc. retains all rights and discretion with respect to the Marks. This means that Checkers, as the franchisor, maintains ownership and control over its trademarks, service marks, and trade dress associated with the Checkers and Rally's brands.
This reservation of rights allows Checkers to use the Marks in various ways, such as operating or franchising restaurants at any location, selling products through different channels like the internet or supermarkets, and even operating restaurants under different brands. These activities can occur within or outside a franchisee's protected area, if one exists, and may potentially compete with a franchisee's restaurant.
For a prospective Checkers franchisee, this means that while they are granted the right to use the Marks to operate their franchised restaurant, they do not own the Marks and have limited control over how Checkers uses them. Checkers has the freedom to expand and diversify its business using the Marks, even if it creates competition for existing franchisees. Franchisees acknowledge that they have no rights to participate in or benefit from any other business activity Checkers undertakes involving the Marks or the System, except as expressly granted in their franchise agreement. This arrangement is typical in franchising, where the franchisor maintains brand control while granting franchisees limited usage rights.