What action must a Checkers franchisee take if they notice an infringement on a Mark?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.04 Notification of Infringements and Claims.
You must notify us immediately of any apparent infringement of or challenge to your use of any Mark, or any claim by another person of any rights in any Mark.
You may not communicate with any person, other than us and our counsel (or other advisor as we may designate), in connection with any such infringement, challenge or claim.
We will have sole discretion to take such action as we deem appropriate and will have the right to control exclusively any litigation or U.S.
Patent and Trademark Office proceeding arising out of any such infringement, challenge or claim or otherwise relating to any Mark.
You must sign any and all documents, render such assistance and do such things as may be advisable in the opinion of us or our counsel to protect our interests in any litigation or U.S.
Patent and Trademark Office or other administrative proceeding or otherwise to protect our interests in the Marks.
- 5.05 Indemnification of Franchisee.
We agree to indemnify you against, and to reimburse you for, all damages for which you are held liable in any proceeding arising out of your authorized use of any Mark pursuant to and in compliance with this Agreement and, except as provided herein, for all costs you reasonably incur in defending any such claim brought against you, provided: (i) you timely notified us of such claim pursuant to Section 5.04, and (ii) that you and your Owners and Affiliates are in compliance with this Agreement and all other agreements with us or any of our Affiliates.
We, at our sole discretion, are entitled to prosecute, defend and/or settle any proceeding arising out of your use of any Mark pursuant to this Agreement, and, if we undertake to prosecute, defend and/or settle any such matter, we will have no obligation to indemnify or reimburse you for any fees or disbursements of any legal counsel or other advisors you may have retained.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, if a franchisee notices any apparent infringement or challenge to the use of any Mark, or any claim by another person of any rights in any Mark, they must notify Checkers immediately. The franchisee is not allowed to communicate with any other person besides Checkers and their counsel regarding the infringement, challenge, or claim.
Checkers retains sole discretion to take action they deem appropriate and has the right to control any litigation or U.S. Patent and Trademark Office proceeding related to the infringement. The franchisee is obligated to sign documents and provide assistance as needed to protect Checkers's interests in any legal or administrative proceedings related to the Marks.
This clause is important for prospective franchisees as it clarifies the process for handling trademark infringements. It protects Checkers's brand identity and ensures consistent legal action. The franchisee's role is limited to notifying Checkers, preventing them from taking unauthorized actions that could harm the brand's legal position.
Checkers also agrees to indemnify the franchisee against damages they are held liable for in any proceeding arising out of their authorized use of any Mark, provided the franchisee notified Checkers of such claim and are in compliance with all agreements. However, Checkers has no obligation to indemnify or reimburse the franchisee for any fees of legal counsel or other advisors the franchisee may have retained if Checkers undertakes to prosecute, defend, and/or settle any such matter.