Who has the right to control litigation arising from infringement of a Checkers Mark?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers' 2025 Franchise Disclosure Document, Checkers maintains sole discretion over legal actions related to trademark infringements. As a franchisee, if you notice any potential infringement of a Checkers Mark, you are obligated to immediately notify Checkers. You are not allowed to communicate with any other party besides Checkers and their counsel regarding the infringement.
Checkers has the exclusive right to decide what action to take, including controlling any litigation or proceedings with the U.S. Patent and Trademark Office related to the Mark. The franchisee is required to assist Checkers by signing documents and providing necessary support to protect Checkers' interests in any legal or administrative proceedings.
Checkers also agrees to indemnify the franchisee against damages they are held liable for in any proceeding arising from the franchisee's authorized use of any Mark, provided the franchisee has notified Checkers of the claim and is in compliance with all agreements. However, if Checkers decides to defend or settle any proceeding related to the use of a Mark, they are not obligated to reimburse the franchisee for any legal counsel fees the franchisee may have incurred.
This arrangement is typical in franchising, as the franchisor needs to protect its brand and trademarks consistently across all franchise locations. By retaining control over trademark litigation, Checkers can ensure a unified legal strategy and protect the overall value of the Checkers brand.