Does Checkersrallys consider materials created by the franchisee for the restaurant to be their sole property?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.03 Information Exchange.You must promptly disclose to us all recipes, processes, ideas, concepts, advertising and promotional materials, website pages and content, methods, techniques or materials used or useful to a fast-food restaurant business, whether or not constituting protectable intellectual property, that you create, or that are created on your behalf or for your benefit by your Owners or employees, in connection with the development or operation of your Restaurant (collectively, the "Materials"). Any such Materials will be deemed our sole and exclusive property, part of the System, and works made-for-hire for us. To the extent that any one of the Materials does not qualify as a "work made-for-hire" for us (as such term is defined under Section 101 of the U.S. Copyright Act), by way of this paragraph you irrevocably convey, grant, transfer and assign ownership of the Material(s), and all related rights to the Materials, both during and after the Term,
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, any recipes, processes, ideas, concepts, advertising and promotional materials, website pages and content, methods, techniques or materials used or useful to a fast-food restaurant business that a franchisee creates, or that are created on their behalf, in connection with the development or operation of their Checkersrallys Restaurant are not considered the franchisee's sole property.
The FDD states that these materials are deemed Checkersrallys's sole and exclusive property, part of the Checkersrallys system, and works made-for-hire for Checkersrallys. This means Checkersrallys owns all rights to these materials.
To the extent that any of the materials do not qualify as a "work made-for-hire" under the U.S. Copyright Act, the franchisee irrevocably conveys, grants, transfers, and assigns ownership of the materials and all related rights to Checkersrallys, both during and after the term of the franchise agreement. This ensures that Checkersrallys maintains complete control and ownership over any intellectual property or creative content developed for or used in the Checkersrallys restaurant.
This is a fairly standard practice in franchising, as franchisors need to maintain brand consistency and control over their systems. Prospective franchisees should be aware that any creative work they develop for their Checkersrallys restaurant will become the property of the franchisor.