According to the Checkersrallys franchise agreement, who owns the Marks?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to the 2025 Checkersrallys Franchise Disclosure Document, Checkers Drive-In Restaurants, Inc. owns the Marks. The franchise agreement states that the franchisee's right to use the Marks is derived solely from the agreement and is limited to conducting business in compliance with the agreement. Any unauthorized use of the Marks by the franchisee constitutes a breach of the agreement and an infringement of Checkersrallys's rights. The agreement does not confer any goodwill or other interests in the Marks to the franchisee, and all goodwill established through the franchisee's use of the Marks inures to the exclusive benefit of Checkersrallys.
This means that while franchisees have the right to use Checkersrallys's trademarks to operate their restaurants, they do not own the trademarks themselves. This is a standard practice in franchising, as it allows the franchisor to maintain control over its brand and ensure consistency across all franchise locations. The franchisee's use of the trademarks is limited to the terms and conditions outlined in the franchise agreement.
Prospective franchisees should understand that they cannot use the Checkersrallys Marks in any way that is not expressly authorized by the franchisor. This includes using the Marks as part of any corporate or legal business name or in any electronic media identifier, such as a website or domain name, without written authorization. Franchisees must also notify Checkersrallys immediately of any apparent infringement of or challenge to their use of any Mark, or any claim by another person of any rights in any Mark. Upon termination of the franchise agreement, the franchisee must discontinue all use of the Marks.