What steps must a Checkersrallys franchisee take regarding internet communications and domain names upon termination or expiration of the franchise agreement?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
- (f) immediately discontinue any mode of communications on the Internet directly or indirectly relating to your Franchised Restaurant, including any Web sites or pages associated with your Franchised Restaurant, and immediately take all steps required by us to transfer any domain name associated with your Franchised Restaurant to us (such as executing a Registrant Name Change Agreement with the applicable Registrar). You irrevocably appoint the person who is then our president as your duly authorized agent and attorney-in-fact to execute all instruments and take all steps to transfer such domain names;
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, upon termination or expiration of the franchise agreement, a franchisee must take specific actions regarding their internet presence and domain names. The franchisee must immediately discontinue any mode of communication on the internet that directly or indirectly relates to the franchised restaurant. This includes ceasing operation of any websites or pages associated with the Checkersrallys restaurant.
Furthermore, the franchisee is required to take all necessary steps to transfer any domain name associated with the franchised restaurant to Checkersrallys. This may involve executing a Registrant Name Change Agreement with the applicable Registrar. To ensure compliance, the franchisee irrevocably appoints the then-current president of Checkersrallys as their agent and attorney-in-fact, authorized to execute all instruments and take all steps necessary to transfer the domain names.
These stipulations are fairly standard in franchise agreements to protect the brand's online identity and prevent confusion after a franchise relationship ends. By retaining control of the domain names and online presence, Checkersrallys can ensure a consistent brand image and prevent former franchisees from operating competing businesses using similar online assets. Franchisees should be aware of these requirements and understand that they will lose control of their restaurant's online presence upon termination or expiration of the agreement.