What assistance must a Checkersrallys franchisee provide to protect Checkersrallys' interests in litigation regarding the Marks?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
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.
- 5.05 Indemnification of Franchisee.We agree to indemnify you against, and to reimburse you for, all damages for which you are held liable in any proceeding arising out of your authorized use of any Mark pursuant to and in compliance with this Agreement and, except as provided herein, for all costs you reasonably incur in defending any such claim brought against you, provided: (i) you timely notified us of such claim pursuant to Section 5.04, and (ii) that you and your Owners and Affiliates are in compliance with this Agreement and all other agreements with us or any of our Affiliates.
We, at our sole discretion, are entitled to prosecute, defend and/or settle any proceeding arising out of your use of any Mark pursuant to this Agreement, and, if we undertake to prosecute, defend and/or settle any such matter, we will have no obligation to indemnify or reimburse you for any fees or disbursements of any legal counsel or other advisors you may have retained.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, a franchisee must immediately notify Checkersrallys of any apparent infringement or 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 Checkersrallys and its counsel regarding any infringement, challenge, or claim. Checkersrallys retains sole discretion to take action it deems appropriate and has the right to exclusively control any litigation or U.S. Patent and Trademark Office proceeding relating to any Mark.
To protect Checkersrallys' interests in any litigation or U.S. Patent and Trademark Office or other administrative proceeding, the franchisee must sign any and all documents, render assistance, and do such things as may be advisable in the opinion of Checkersrallys or its counsel.
Checkersrallys will indemnify the franchisee against, and reimburse them for, all damages for which they are held liable in any proceeding arising out of their authorized use of any Mark pursuant to and in compliance with the Franchise Agreement. This is provided that the franchisee timely notified Checkersrallys of such claim and that the franchisee and their Owners and Affiliates are in compliance with the Franchise Agreement and all other agreements with Checkersrallys or any of its Affiliates. Checkersrallys is entitled to prosecute, defend and/or settle any proceeding arising out of the franchisee's use of any Mark pursuant to the Franchise Agreement. If Checkersrallys undertakes to prosecute, defend and/or settle any such matter, they will have no obligation to indemnify or reimburse the franchisee for any fees or disbursements of any legal counsel or other advisors the franchisee may have retained.