With whom is a Checkersrallys franchisee permitted to communicate regarding any infringement of a Mark?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
substitute trademarks, service marks or trade dress, you agree to comply with our directions within a reasonable time after we provide notice to you. We will have no liability or obligation whatsoever with respect to any such required modification or discontinuance of any Mark or the promotion of a substitute trademark, service mark or trade dress.
- 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.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, a franchisee is permitted to communicate only with Checkersrallys and its counsel (or other advisor as Checkersrallys may designate) regarding any infringement of a Mark. The franchisee must notify Checkersrallys immediately of any apparent infringement or challenge to the use of any Mark, or any claim by another person of any rights in any Mark.
Checkersrallys retains sole discretion to take action it deems appropriate and has the right to control exclusively any litigation or U.S. Patent and Trademark Office proceeding arising out of any infringement, challenge, or claim relating to any Mark. The franchisee is obligated to sign documents, provide assistance, and take actions deemed advisable by Checkersrallys or its counsel to protect Checkersrallys's interests in any litigation, U.S. Patent and Trademark Office, or other administrative proceeding related to the Marks.
This requirement ensures that Checkersrallys maintains control over its brand and legal strategy concerning its trademarks. It prevents franchisees from taking actions that could potentially harm the brand's image or legal position. The franchisee's role is limited to notifying Checkersrallys of any potential infringement, and then cooperating with Checkersrallys's legal efforts.
Checkersrallys also agrees to indemnify the franchisee against damages for which the franchisee is held liable in any proceeding arising out of their authorized use of any Mark, provided the franchisee has notified Checkersrallys of such claim and is in compliance with all agreements. However, if Checkersrallys undertakes to defend or settle any such matter, it has no obligation to reimburse the franchisee for any legal counsel or advisor fees the franchisee may have retained.