Can a Checkersrallys franchisee contest the validity or ownership of any of the Marks during or after the term of the agreement?

According to Checkersrallys's 2025 Franchise Disclosure Document, franchisees are prohibited from contesting the validity or ownership of the brand's trademarks (the Marks), both during and after the term of their franchise agreement. Checkersrallys retains ownership of the Marks, and the franchisee's right to use them is solely derived from and limited by the franchise 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 explicitly states that it does not grant the franchisee any goodwill or other interests in the Marks, and any goodwill established through the franchisee's use of the Marks inures exclusively to the benefit of Checkersrallys.

This provision is standard in franchising, as the franchisor's trademarks are a critical asset and represent the brand's identity and reputation. By preventing franchisees from contesting the Marks, Checkersrallys protects its intellectual property and ensures consistency across all franchise locations. This restriction applies not only to the specific trademarks, service marks, and trade dress initially authorized but also to any additional or substitute trademarks that Checkersrallys may authorize the franchisee to use during the term of the agreement.

For a prospective Checkersrallys franchisee, this means they cannot challenge Checkersrallys's ownership or validity of the trademarks. If a franchisee were to attempt to contest the Marks, it would be a violation of the franchise agreement, potentially leading to termination of the agreement and legal action by Checkersrallys. 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.