Does the Checkers franchise agreement require franchisees to disclose materials created before the franchise term?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.03 Information Exchange. You must promptly disclose to us all recipes, processes, ideas, concepts, advertising and promotional materials, website pages and content, methods, techniques or materials used or useful to a fast-food restaurant business, whether or not constituting protectable intellectual property, that you create, or that are created on your behalf or for your benefit by your Owners or employees, in connection with the development or operation of your Restaurant (collectively, the "Materials"). Any such Materials will be deemed our sole and exclusive property, part of the System, and works made-for-hire for us. To the extent that any one of the Materials does not qualify as a "work made-for-hire" for us (as such term is defined under Section 101 of the U.S. Copyright Act), by way of this paragraph you irrevocably convey, grant, transfer and assign ownership of the Material(s), and all related rights to the Materials, both during and after the Term,
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to the 2025 Checkers Franchise Disclosure Document, franchisees are required to disclose certain materials. Specifically, during the term of the franchise, Checkers franchisees must promptly disclose all recipes, processes, ideas, concepts, advertising and promotional materials, website pages and content, methods, techniques, or materials used or useful to a fast-food restaurant business. This includes anything created by the franchisee, their owners, or employees in connection with the development or operation of their Checkers restaurant.
These disclosed materials are deemed the sole and exclusive property of Checkers, considered part of the Checkers system, and classified as works made-for-hire. To the extent that any of the materials do not qualify as "work made-for-hire" under copyright law, the franchisee irrevocably conveys, grants, transfers, and assigns ownership and all related rights to Checkers, both during and after the term of the franchise agreement.
This requirement ensures that Checkers maintains control over its brand, system, and intellectual property. It allows Checkers to incorporate successful innovations from individual franchisees into the broader system for the benefit of all franchisees. However, the FDD does not specify whether materials created before the franchise term must be disclosed. A prospective franchisee should clarify with Checkers whether there is any obligation to disclose pre-existing materials or intellectual property.