What does Section 5 of the Checkers Franchise Agreement address regarding trademarks?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
5. TRADEMARKS.
- 5.01 Ownership of the Marks. You acknowledge that we own the Marks. Your right to use the Marks is derived solely from this Agreement and is limited to conducting business pursuant to and in compliance with this Agreement. Your unauthorized use of any of the Marks constitutes a breach of this Agreement and an infringement of our rights to the Marks. This Agreement does not confer on you any goodwill or other interests in the Marks. Your use of the Marks and any goodwill established thereby inures to our exclusive benefit. All provisions of this Agreement applicable to the Marks apply to any additional or substitute trademarks, service marks and trade dress we authorize you to use. You may not at any time during or after the Term contest, or assist any other person in contesting, the validity or ownership of any of the Marks.
- 5.02 Use of the Marks. You agree to use the Marks as the sole identification of the Franchised Restaurant, provided you identify yourself as the independent owner thereof in the manner we prescribe. You agree to use the Marks as we prescribe in connection with the sale of authorized food products, beverages and services. You may not use any Mark (or any abbreviation, modification or colorable imitation) as part of any corporate or legal business name or in any other manner (including as an electronic media identifier, such as a website, web page or domain name) not expressly authorized by us in writing.
- 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.
- 5.04 Notification of Infringements and Claims.
You must notify us immediately of any apparent infringement of or challenge to your use of any Mark, or any claim by another person of any rights in any Mark.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to the 2025 Checkers Franchise Agreement, Section 5 pertains to trademarks and outlines the franchisee's rights and responsibilities regarding their use. It clarifies that Checkers owns the trademarks, and the franchisee's right to use them is solely derived from the Franchise Agreement, limited to conducting business in compliance with it. Unauthorized use of the trademarks constitutes a breach of the agreement and an infringement of Checkers' rights. The agreement does not grant the franchisee any goodwill or other interests in the trademarks, and any goodwill established through their use inures to Checkers' exclusive benefit. All provisions applicable to the trademarks also apply to any additional or substitute trademarks that Checkers authorizes the franchisee to use. The franchisee is prohibited from contesting the validity or ownership of any of the trademarks during or after the term of the agreement.
The agreement specifies how the franchisee must use the trademarks, requiring them to be the sole identification of the franchised restaurant, with proper identification as an independent owner. The trademarks must be used as prescribed by Checkers in connection with the sale of authorized food products, beverages, and services. The franchisee is prohibited from using any trademark (or any abbreviation, modification, or colorable imitation) as part of any corporate or legal business name or in any other manner not expressly authorized by Checkers in writing, including electronic media identifiers like websites or domain names.
The Franchise Agreement also addresses the possibility of modifying or discontinuing the use of trademarks. If Checkers deems it advisable to modify or discontinue the use of any trademark or to use additional or substitute trademarks, the franchisee agrees to comply with Checkers' directions within a reasonable time after receiving notice. Checkers assumes no liability or obligation for any required modification or discontinuance of any trademark or the promotion of a substitute trademark. Finally, the franchisee is obligated to notify Checkers immediately of any apparent infringement of or challenge to their use of any trademark, or any claim by another person of any rights in any trademark.