If Checkers modifies or discontinues a Mark, does Checkers have any liability for the promotion of a substitute trademark?

According to Checkers' 2025 Franchise Disclosure Document, Checkers will not have any liability regarding the modification or discontinuation of any Mark or the promotion of a substitute trademark, service mark, or trade dress. This means that if Checkers decides to change its branding or requires franchisees to use a different trademark, Checkers is not obligated to compensate franchisees for any costs associated with the change or the promotion of the new trademark.

This lack of liability could pose a financial risk to franchisees. If Checkers mandates a change in branding, franchisees will likely bear the expenses of updating signage, marketing materials, and other branded items to align with the new trademark. These costs can be significant and may impact a franchisee's profitability, especially if the new trademark requires extensive promotional efforts to gain recognition in the market.

It is important for prospective Checkers franchisees to understand this aspect of the franchise agreement and factor in the potential costs associated with rebranding or trademark changes. Franchisees should inquire about Checkers' history of trademark changes and its plans for future branding strategies to better assess the potential financial impact on their business.