Who has the sole discretion to take action regarding any infringement of a Checkers Mark?
Checkers Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
You may not communicate with any person, other than us and our counsel (or other advisor as we may designate), in connection with any such infringement, challenge or claim.
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's 2025 Franchise Disclosure Document, Checkers has sole discretion to act on any infringement of a Checkers Mark. As a franchisee, you must immediately notify Checkers of any apparent infringement, challenge to the use of any Mark, or any claim by another person of any rights in any Mark. The franchisee is prohibited from communicating with anyone other than Checkers and its counsel regarding any infringement, challenge, or claim.
Checkers retains the exclusive right to control any litigation or U.S. Patent and Trademark Office proceeding arising out of any infringement, challenge, or claim relating to any Mark. The franchisee is obligated to sign documents and provide assistance to protect Checkers's interests in any legal or administrative proceedings related to the Marks.
This means that Checkers maintains complete control over how its trademarks are defended and protected. While franchisees are required to report any potential infringements, they cannot take independent action. This protects the brand's uniformity and legal strategy, but it also means franchisees must rely on Checkers to vigorously defend the Marks. Franchisees benefit from Checkers's obligation to take action, as the franchisor is responsible for protecting the brand's trademarks.
This is a fairly standard clause in franchise agreements, as franchisors typically want to maintain tight control over their brand and trademarks. Prospective franchisees should understand that they have a responsibility to report any potential infringements but will not have the authority to take independent legal action.