If Checkersrallys does not exercise its right to purchase the franchised restaurant after termination, what must the franchisee do with items displaying Checkersrallys Marks?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
16.02 Discontinue Use of Marks and Confidential Information.
Upon the termination or expiration (without renewal) of this Agreement, you will:
- (a) not directly or indirectly at any time or in any manner use any Mark, any colorable imitation or other indicia of a Restaurant;
- (b) take such action as may be required to cancel all fictitious or assumed name registrations relating to your use of any Mark;
- (c) notify the telephone company and all telephone directory publishers of the termination or expiration of your right to use any telephone number and any regular, classified or other telephone directory listings associated with any Mark and to authorize transfer of the number to us or at our direction;
- (d) if we do not exercise our right to purchase the Franchised Restaurant pursuant to Section 16.04, promptly remove from the Premises, and discontinue using for any purpose, all signs, fixtures, furniture, decor items, advertising materials, forms and other materials and supplies which display any of the Marks or any distinctive features, images, or designs associated with Restaurants and, at your expense, make such alterations as may be necessary (and as we may require) to
distinguish the Premises so clearly from its former appearance as a Restaurant and from other Restaurants as to prevent any possibility of confusion by the public. If you fail to de-identify the Premises and the Franchised Restaurant to our specifications, you must reimburse us for our losses and expenses if we and our personnel are required to do so on your behalf;
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, if Checkersrallys does not exercise its option to purchase the franchised restaurant after the termination or expiration (without renewal) of the franchise agreement, the franchisee has specific obligations regarding the removal and discontinuation of Checkersrallys's branding. The franchisee must promptly remove all signs, fixtures, furniture, decor items, advertising materials, forms, and other materials displaying Checkersrallys's marks from the premises.
Furthermore, the franchisee is required to discontinue using these items for any purpose. In addition to removing branded items, the franchisee must make necessary alterations to the premises, at their own expense. These alterations should clearly distinguish the location from its former appearance as a Checkersrallys restaurant and from other Checkersrallys restaurants, preventing any potential public confusion. Checkersrallys retains the right to specify the alterations required to de-identify the premises.
If the franchisee fails to adequately de-identify the premises to Checkersrallys's satisfaction, Checkersrallys has the right to perform the de-identification work themselves. In such cases, the franchisee is responsible for reimbursing Checkersrallys for all losses and expenses incurred by Checkersrallys and its personnel in completing the de-identification process. This provision ensures that upon termination, the franchisee takes appropriate steps to eliminate any association with the Checkersrallys brand, protecting Checkersrallys's brand identity and preventing consumer confusion.