Is a Checkers franchisee allowed to contest the validity or ownership of any of the Marks during or after the term of the agreement?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.01 Ownership of the Marks. You acknowledge that we own the Marks. Your right to use the Marks is derived solely from this Agreement and is limited to conducting business pursuant to and in compliance with this Agreement. Your unauthorized use of any of the Marks constitutes a breach of this Agreement and an infringement of our rights to the Marks. This Agreement does not confer on you any goodwill or other interests in the Marks. Your use of the Marks and any goodwill established thereby inures to our exclusive benefit. All provisions of this Agreement applicable to the Marks apply to any additional or substitute trademarks, service marks and trade dress we authorize you to use. You may not at any time during or after the Term contest, or assist any other person in contesting, the validity or ownership of any of the Marks.
- 5.02 Use of the Marks. You agree to use the Marks as the sole identification of the Franchised Restaurant, provided you identify yourself as the independent owner thereof in the manner we prescribe. You agree to use the Marks as we prescribe in connection with the sale of authorized food products, beverages and services. You may not use any Mark (or any abbreviation, modification or colorable imitation) as part of any corporate or legal business name or in any other manner (including as an electronic media identifier, such as a website, web page or domain name) not expressly authorized by us in writing.
- 5.03 Discontinuance of Use of Marks.
If it becomes advisable at any time for us and/or you to modify or discontinue use of any Mark and/or use one or more additional or substitute trademarks, service marks or trade dress, you agree to comply with our directions within a reasonable time after we provide notice to you.
We will have no liability or obligation whatsoever with respect to any such required modification or discontinuance of any Mark or the promotion of a substitute trademark, service mark or trade dress.
- 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.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to the 2025 Checkers Franchise Disclosure Document, franchisees are prohibited from contesting the validity or ownership of Checkers' trademarks (the Marks), both during and after the term of their franchise agreement. The agreement explicitly states that the franchisee's right to use the Marks is derived solely from the franchise agreement and is contingent upon compliance with its terms. Unauthorized use of the Marks is considered a breach of contract and an infringement of Checkers' rights.
This provision ensures that Checkers maintains control and protection over its brand identity. The franchise agreement does not grant franchisees any goodwill or other interests in the Marks, and any goodwill established through the franchisee's use of the Marks inures exclusively to the benefit of Checkers. This is a standard clause in most franchise agreements, as it protects the franchisor's intellectual property and brand reputation.
Furthermore, the franchisee is obligated to notify Checkers immediately of any apparent infringement or challenge to the use of any Mark, or any claim by another person of rights in any Mark. This requirement reinforces the franchisee's role in safeguarding the brand and its associated trademarks. Franchisees must adhere to Checkers' directions regarding any modification or discontinuance of a Mark, and Checkers assumes no liability for any required changes or the promotion of substitute trademarks.