If Checkersrallys believes it is advisable to modify or discontinue use of any Mark, what is the franchisee's obligation?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchise Agreement grants you the right to use the Marks. If we believe, in our sole discretion, that it is advisable for us or you to modify or discontinue use of any Mark or use one or more additional or substitute trademarks, service marks or trade dress, you must comply with our directions. We will have no liability or obligation for your modification or discontinuance of any Mark or promotion of a substitute trademark, service mark or trade dress.
You must immediately notify us of any apparent infringement of or challenge to your use of any Mark, or claim by any person of any rights to any Mark and you must not communicate with any person other than us and our counsel in connection with any infringement, challenge or claim. We will have sole discretion to take any action we deem appropriate and will have the right to control exclusively any litigation or PTO or other administrative proceeding arising out of any infringement, challenge or claim or otherwise relating to any Mark. You must execute any and all instruments and documents, provide assistance and do such acts and things as, in the opinion of our counsel, may be necessary or advisable to protect our interests in any litigation or PTO or other administrative proceeding or otherwise to protect our interests in the Marks.
We will indemnify you against, and reimburse you for, all damages for which you are held liable in any proceeding arising out of your authorized use of any Mark under the
Source: Item 13 — TRADEMARKS (FDD pages 60–63)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, franchisees must comply with Checkersrallys's directions if Checkersrallys believes it is advisable to modify or discontinue the use of any Mark, or to use one or more additional or substitute trademarks, service marks, or trade dress. Checkersrallys will not have any liability or obligation for the franchisee's modification or discontinuance of any Mark or promotion of a substitute trademark, service mark, or trade dress.
This means that Checkersrallys retains control over its brand and image, and can make changes to its trademarks and branding as it sees fit. While this protects the overall brand consistency, it also means that franchisees must be prepared to adapt to these changes, potentially incurring costs to update signage, menus, and marketing materials. The franchisee bears the cost of these changes, as Checkersrallys assumes no liability for these modifications.
In the event of any apparent infringement or challenge to the use of any Mark, the franchisee must immediately notify Checkersrallys and must not communicate with any person other than Checkersrallys and its counsel regarding the issue. Checkersrallys has sole discretion to take any action it deems appropriate and has the right to control exclusively any litigation or PTO or other administrative proceeding arising out of any infringement, challenge, or claim or otherwise relating to any Mark. The franchisee must execute any and all instruments and documents, provide assistance and do such acts and things as, in the opinion of Checkersrallys's counsel, may be necessary or advisable to protect Checkersrallys's interests in any litigation or PTO or other administrative proceeding or otherwise to protect Checkersrallys's interests in the Marks.
Checkersrallys will indemnify the franchisee against, and reimburse them for, all damages for which they are held liable in any proceeding arising out of their authorized use of any Mark under the Franchise Agreement. They will also cover all costs reasonably incurred in defending any claim brought against them or any proceeding in which they are named as a party, provided the franchisee has timely notified Checkersrallys of such claim or proceeding and they and their owners are in compliance with the Franchise Agreement and all other agreements entered into with Checkersrallys and its affiliates. Checkersrallys has the right to prosecute, defend, or settle any proceeding arising out of the franchisee's use of any Mark, and if Checkersrallys decides to take such action, it has no obligation to indemnify or reimburse the franchisee for any fees or disbursements of counsel retained by them.