What must a Checkers franchisee do if they become aware of any apparent infringement of any 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' 2025 Franchise Disclosure Document, if a franchisee becomes aware of any potential infringement or challenges to the use of any Checkers trademark, or any claims by another party regarding rights to a Checkers mark, they must immediately notify Checkers. The franchisee is not allowed to communicate with any other party besides Checkers and its counsel regarding the infringement, challenge, or claim.
Checkers retains the sole discretion to take any action it deems appropriate, including controlling any litigation or U.S. Patent and Trademark Office proceedings related to the infringement, challenge, or claim. The franchisee is obligated to sign documents, provide assistance, and take actions deemed advisable by Checkers or its counsel to protect Checkers' interests in any litigation, U.S. Patent and Trademark Office, or other administrative proceedings related to the trademarks.
Checkers agrees to indemnify the franchisee against damages they are held liable for in any proceeding arising from their authorized use of any Checkers mark, provided they comply with the franchise agreement and notify Checkers of the claim in a timely manner. However, Checkers has the right to control the defense or settlement of any such proceeding, and if Checkers chooses to do so, it is not obligated to reimburse the franchisee for any legal fees or advisor costs the franchisee may have incurred.
This clause is typical in franchise agreements, as the franchisor needs to protect its trademarks. By requiring the franchisee to report any potential infringements and allowing the franchisor to control any legal proceedings, Checkers maintains control over its brand and ensures consistent legal strategy.