Under what circumstances is Checkersrallys required by agreement to protect or defend copyrights or confidential information?
Checkersrallys Franchise · 2025 FDDAnswer from 2025 FDD Document
Further, there are no infringing uses actually known to us that could materially affect your use of the copyrighted materials in any state. Except as noted above, we are not required by any agreement to protect or defend copyrights or confidential information, although we will do so when this action is in the best interest of our franchise system.
- 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.
- 5.05 Indemnification of Franchisee.We agree to indemnify you against, and to reimburse you for, all damages for which you are held liable in any proceeding arising out of your authorized use of any Mark pursuant to and in compliance with this Agreement and, except as provided herein, for all costs you reasonably incur in defending any such claim brought against you, provided: (i) you timely notified us of such claim pursuant to Section 5.04, and (ii) that you and your Owners and Affiliates are in compliance with this Agreement and all other agreements with us or any of our Affiliates.
We, at our sole discretion, are entitled to prosecute, defend and/or settle any proceeding arising out of your use of any Mark pursuant to this Agreement, and, if we undertake to prosecute, defend and/or settle any such matter, we will have no obligation to indemnify or reimburse you for any fees or disbursements of any legal counsel or other advisors you may have retained.
Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD pages 63–64)
What This Means (2025 FDD)
According to Checkersrallys's 2025 Franchise Disclosure Document, Checkersrallys is generally not required by any agreement to protect or defend copyrights or confidential information. However, Checkersrallys will do so when this action is in the best interest of their franchise system.
Checkersrallys does agree to indemnify the franchisee against damages for which the franchisee is held liable in any proceeding arising out of the franchisee's authorized use of any Mark, provided the franchisee timely notified Checkersrallys of such claim and the franchisee is in compliance with the Franchise Agreement. However, if Checkersrallys undertakes to prosecute, defend, and/or settle any such matter, they will have no obligation to indemnify or reimburse the franchisee for any fees or disbursements of any legal counsel or other advisors the franchisee may have retained.
In the event of any apparent infringement of or challenge to the franchisee's use of any Mark, or any claim by another person of any rights in any Mark, the franchisee must notify Checkersrallys immediately. The franchisee may not communicate with any person other than Checkersrallys and its counsel in connection with any such infringement, challenge, or claim. Checkersrallys will have sole discretion to take such action as it deems 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. The franchisee must sign any and all documents, render such assistance and do such things as may be advisable in the opinion of Checkersrallys or its counsel to protect Checkersrallys's interests in any litigation or U.S. Patent and Trademark Office or other administrative proceeding or otherwise to protect Checkersrallys's interests in the Marks.