What should a Chicken Guy franchisee do with any filings or registrations for the Franchised Restaurant that contain any Proprietary Marks upon termination or expiration of the agreement?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
- (5) Franchisee immediately shall discontinue all use of the Proprietary Marks and Chicken Guy's trade secrets in connection with the Franchised Restaurant and of any and all items bearing the Proprietary Marks; remove the Proprietary Marks from the Franchised Restaurant and from clothing, signs, materials, motor vehicles and other items owned or used by Franchisee in the operation of the Franchised Restaurant; cease to use, in any manner whatsoever, any Websites or other Electronic Identifiers associated with the Proprietary Marks or the System; cancel all advertising for the Franchised Restaurant that contains the Proprietary Marks (including telephone directory listings); and take such action as may be necessary to cancel any filings or registrations for the Franchised Restaurant that contain any Proprietary Marks.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, upon termination or expiration of the franchise agreement, a franchisee must take action to cancel any filings or registrations for the Franchised Restaurant that contain any Proprietary Marks. This requirement is part of the franchisee's broader obligations upon termination or expiration of the agreement.
This means that if a Chicken Guy franchisee has registered the restaurant's name or any related trademarks with local authorities, and those registrations include Chicken Guy's Proprietary Marks, the franchisee is responsible for canceling those filings. This ensures that the franchisee no longer has any legal claim to use the Proprietary Marks after the agreement ends.
This obligation is crucial for protecting Chicken Guy's brand and preventing confusion in the marketplace. By requiring franchisees to cancel these filings, Chicken Guy ensures that only authorized operators can use its trademarks and brand identity. Franchisees must comply with this requirement to avoid potential legal issues and to fulfill their contractual obligations upon exiting the Chicken Guy system.