Is a Checkersrallys franchisee required to disclose recipes used in their restaurant to Checkersrallys?
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, franchisees must disclose all recipes, processes, ideas, and materials used in their restaurant's operation to Checkersrallys. This includes anything created by the franchisee, their owners, or employees.
This requirement extends to any materials useful to a fast-food restaurant business, regardless of whether they are considered protectable intellectual property. Checkersrallys considers these materials their sole and exclusive property, designating them as part of the Checkersrallys system and as works made for hire.
If any of the disclosed materials do not legally qualify as "work made-for-hire," the franchisee irrevocably transfers ownership and all related rights to Checkersrallys. This transfer of ownership applies both during and after the franchise term, ensuring that Checkersrallys maintains control over any innovations or improvements developed within the franchise system.