If Checkers decides to modify or discontinue the use of any Mark, what is a franchisee's obligation?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, if Checkers decides to modify or discontinue the use of any of its marks, franchisees must comply with Checkers' directions within a reasonable time after receiving notice. This includes any trademarks, service marks, or trade dress.
Checkers bears no liability or obligation for any required modification or discontinuance of any mark, or for the promotion of a substitute trademark, service mark, or trade dress. The franchisee is responsible for implementing these changes at their own expense.
This clause highlights the importance of Checkers' control over its brand identity and the franchisee's obligation to adhere to these changes. While Checkers is not obligated to compensate franchisees for these changes, franchisees benefit from the continued strength and consistency of the Checkers brand.