What happens to recipes, processes, ideas, and materials created by a Checkers franchisee in connection with the restaurant's operation?
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 Checkers's 2025 Franchise Disclosure Document, any 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 that a franchisee creates in connection with their Checkers restaurant are considered the sole and exclusive property of Checkers. This includes anything created by the franchisee, their owners, or employees.
The FDD states that these materials are deemed part of the Checkers system and are considered works made-for-hire for the company. This means Checkers owns all rights to these materials. If any of the materials do not legally qualify as a "work made-for-hire" under copyright law, the franchisee irrevocably assigns all ownership and rights to Checkers, both during and after the franchise term.
This clause ensures that Checkers maintains control over its brand and system standards. It prevents franchisees from using innovations developed within the Checkers system for their own benefit outside of the franchise agreement or from sharing them with competitors. For a prospective franchisee, this means that any successful innovation or improvement they develop for their Checkers restaurant automatically becomes the property of the franchisor, with no guarantee of compensation or recognition.