After the Checkersrallys franchise agreement terminates, are franchisees allowed to use any marks or indicia of a Checkersrallys Restaurant?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon the termination or expiration (without renewal) of this Agreement, you will:
- (a) not directly or indirectly at any time or in any manner use any Mark, any colorable imitation or other indicia of a Restaurant;
- (b) take such action as may be required to cancel all fictitious or assumed name registrations relating to your use of any Mark;
- (c) notify the telephone company and all telephone directory publishers of the termination or expiration of your right to use any telephone number and any regular, classified or other telephone directory listings associated with any Mark and to authorize transfer of the number to us or at our direction;
- (d) if we do not exercise our right to purchase the Franchised Restaurant pursuant to Section 16.04, promptly remove from the Premises, and discontinue using for any purpose, all signs, fixtures, furniture, decor items, advertising materials, forms and other materials and supplies which display any of the Marks or any distinctive features, images, or designs associated with Restaurants and, at your expense, make such alterations as may be necessary (and as we may require) to
distinguish the Premises so clearly from its former appearance as a Restaurant and from other Restaurants as to prevent any possibility of confusion by the public. If you fail to de-identify the Premises and the Franchised Restaurant to our specifications, you must reimburse us for our losses and expenses if we and our personnel are required to do so on your behalf;
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, franchisees are prohibited from using any marks or indicia of a Checkersrallys Restaurant after the termination or expiration of the franchise agreement. Specifically, franchisees cannot directly or indirectly use any Mark, any colorable imitation, or other indicia of a Restaurant. This restriction is absolute and applies at any time and in any manner after the agreement's termination or expiration.
In addition to discontinuing the use of Checkersrallys's marks, franchisees must also take action to cancel all fictitious or assumed name registrations related to their use of any Mark. They are required to notify the telephone company and directory publishers about the termination of their right to use any telephone number and directory listings associated with any Mark, and authorize the transfer of the number to Checkersrallys or its direction.
Furthermore, if Checkersrallys does not exercise its option to purchase the franchised restaurant, the franchisee is responsible for removing all signs, fixtures, furniture, decor items, advertising materials, and other materials that display any of the Marks or distinctive features associated with Checkersrallys Restaurants. The franchisee must also make necessary alterations to distinguish the premises from its former appearance as a Checkersrallys Restaurant to prevent public confusion. Failure to properly de-identify the premises to Checkersrallys's specifications may result in the franchisee reimbursing Checkersrallys for any losses and expenses incurred to do so.