After the Checkers franchise agreement terminates or expires, what must a franchisee do regarding the Marks and Restaurant indicia?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
16.02 Discontinue Use of Marks and Confidential Information.
Upon the termination or expiration (without renewal) of this Agreement, you will:
- (a) not directly or indirectly at any time or in any manner use any Mark, any colorable imitation or other indicia of a Restaurant;
- (b) take such action as may be required to cancel all fictitious or assumed name registrations relating to your use of any Mark;
- (c) notify the telephone company and all telephone directory publishers of the termination or expiration of your right to use any telephone number and any regular, classified or other telephone directory listings associated with any Mark and to authorize transfer of the number to us or at our direction;
- (d) if we do not exercise our right to purchase the Franchised Restaurant pursuant to Section 16.04, promptly remove from the Premises, and discontinue using for any purpose, all signs, fixtures, furniture, decor items, advertising materials, forms and other materials and supplies which display any of the Marks or any distinctive features, images, or designs associated with Restaurants and, at your expense, make such alterations as may be necessary (and as we may require) to
distinguish the Premises so clearly from its former appearance as a Restaurant and from other Restaurants as to prevent any possibility of confusion by the public. If you fail to de-identify the Premises and the Franchised Restaurant to our specifications, you must reimburse us for our losses and expenses if we and our personnel are required to do so on your behalf;
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, upon termination or expiration of the franchise agreement, a franchisee faces several requirements regarding the use of Checkers's trademarks and restaurant indicia. The franchisee must immediately cease all direct or indirect use of any Checkers's mark or any imitation that suggests a Checkers restaurant. This includes discontinuing the use of any colorable imitation or other indicia of a Restaurant.
Additionally, the franchisee is required to cancel all assumed name registrations related to the use of any Checkers mark. They must also notify the telephone company and directory publishers about the termination of their right to use any telephone number or directory listings associated with Checkers, authorizing the transfer of the number to Checkers or its designee.
Furthermore, unless Checkers exercises its option to purchase the franchised restaurant, the franchisee must promptly remove all signs, fixtures, furniture, decor, advertising, and other materials displaying Checkers's marks or distinctive features from the premises. The franchisee is also responsible for making any necessary alterations to clearly distinguish the premises from its former appearance as a Checkers restaurant and from other Checkers locations, preventing any public confusion. Failure to properly de-identify the premises to Checkers's standards may result in the franchisee being liable for Checkers's losses and expenses incurred to complete the de-identification.