What is a Checkersrallys franchisee required to do if Checkersrallys decides to modify or discontinue use of any Mark?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.03 Discontinuance of Use of Marks.If it becomes advisable at any time for us and/or you to modify or discontinue use of any Mark and/or use one or more additional or 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.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to the 2025 Checkersrallys Franchise Disclosure Document, if Checkersrallys decides to modify or discontinue the use of any of its marks, franchisees must comply with Checkersrallys' directions within a reasonable time after receiving notice. This includes adhering to any changes or discontinuations of trademarks, service marks, or trade dress.
This requirement means that franchisees must be prepared to adapt their branding and marketing materials to reflect any changes Checkersrallys makes to its marks. This could involve updating signage, menus, advertising, and other materials to align with the new branding. While franchisees are obligated to comply with these changes, Checkersrallys assumes no liability or obligation for any costs associated with the modification or discontinuance of any mark, or the promotion of a substitute trademark, service mark, or trade dress.
This aspect of the franchise agreement highlights the importance of the relationship between the franchisor and franchisee concerning brand management. Franchisees benefit from the established brand recognition of Checkersrallys, but they must also accept that Checkersrallys has the right to modify its branding as it sees fit. Franchisees should factor in potential costs for rebranding when evaluating the financial aspects of the franchise.