After termination of a Checkersrallys franchise, what is prohibited regarding the use of Marks or imitations of a Checkersrallys restaurant?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
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, after the termination or expiration of the franchise agreement, the franchisee is prohibited from using any Checkersrallys Marks or anything that imitates the look and feel of a Checkersrallys restaurant. Specifically, the franchisee cannot directly or indirectly use any Mark, any colorable imitation, or other indicia of a Checkersrallys Restaurant.
Additionally, the franchisee must take action to cancel any assumed name registrations related to the use of any Mark. They must also notify the telephone company and directory publishers about the termination of their right to use any telephone number or directory listings associated with any Mark, and authorize the transfer of the number to Checkersrallys.
Furthermore, if Checkersrallys does not buy the restaurant back, the franchisee must remove all signs, fixtures, furniture, decor, advertising, and other materials that display any of the Marks or distinctive features associated with Checkersrallys restaurants. The franchisee is responsible for altering the premises to clearly distinguish it from its former appearance as a Checkersrallys restaurant to prevent public confusion. If the franchisee fails to do so, Checkersrallys can make the changes and charge the franchisee for any associated losses and expenses.