What rights does Checkers have regarding trade fixtures and trademarks upon the expiration or termination of the Franchise Agreement?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
of refusal to lease the Premises as the new lessee or sublessee.
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- Landlord agrees that Franchisor shall have the right to enter the Premises to make any modifications or alterations necessary in Franchisor's sole discretion to protect its franchise system, trademarks, trade names, trade dress and other intellectual property without being guilty of trespass or any other tort or crime.
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- Landlord agrees that upon the expiration or termination of the Franchise Agreement, Franchisor shall have the right to enter the Premises and remove any trade fixtures, interior or exterior signs or other items bearing its trademarks. Landlord agrees upon the expiration or termination of the Franchise Agreement to relinquish to Franchisor any and all liens or other ownership interests, whether by operation of law or otherwise, in and to any tangible property bearing Franchisor's trademarks, service marks or trade dress.
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Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkers's 2025 Franchise Disclosure Document, upon the expiration or termination of the Franchise Agreement, Checkers has specific rights regarding the restaurant premises, trade fixtures, and trademarks. Checkers has the right to enter the premises and remove any trade fixtures, interior or exterior signs, or other items bearing its trademarks. This ensures that after a franchise agreement ends, the restaurant no longer displays Checkers' branding unless a new agreement is reached. This protects Checkers' brand identity and prevents unauthorized use of its trademarks.
Additionally, the landlord agrees to relinquish to Checkers any liens or other ownership interests in any tangible property bearing Checkers' trademarks, service marks, or trade dress. This provision ensures that Checkers maintains control over its branding elements and can prevent any third-party claims on items displaying its trademarks. This is particularly important in preventing disputes over ownership of branded equipment or signage.
Furthermore, Checkers retains the right to make modifications or alterations to the premises to protect its franchise system, trademarks, trade names, trade dress, and other intellectual property. This allows Checkers to ensure that even after a franchise agreement ends, the physical location cannot be altered in a way that infringes on Checkers' intellectual property rights. These stipulations are typical in franchise agreements to protect the franchisor's brand and intellectual property.