What is the Checkersrallys franchisee's obligation if there is an apparent infringement of any Mark?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, if a franchisee becomes aware of a potential infringement or challenge to their use of any Checkersrallys mark, or if another party claims rights to a mark, the franchisee must immediately notify Checkersrallys.
The franchisee is not allowed to communicate with anyone other than Checkersrallys and its counsel regarding the infringement, challenge, or claim. Checkersrallys retains the sole discretion to take any action it deems appropriate, including controlling any litigation or U.S. Patent and Trademark Office proceedings related to the 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 proceedings related to the marks. This ensures that Checkersrallys maintains control over its brand and can act swiftly to protect its trademarks.