Can a Chicken Guy franchisee register or license the Proprietary Marks without Chicken Guy's approval?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee will not seek to register, reregister, assert claim to ownership of, license or allow others to use, or otherwise appropriate to itself, any of the Proprietary Marks or any mark or name confusingly similar thereto, or the goodwill symbolized by any of the foregoing except to the extent this action inures to the benefit of, and has the prior written approval of, Chicken Guy.
Any unauthorized use of the Proprietary Marks by Franchisee or attempt by Franchisee, directly or indirectly, to register the Proprietary Marks in any jurisdiction shall constitute a breach of this Agreement and an infringement of Chicken Guy's rights in and to the Proprietary Marks.
Franchisee promptly shall inform Chicken Guy in writing as to any infringement of the Proprietary Marks of which it has knowledge.
Franchisee shall not make any demand or serve any notice, orally or in writing, or institute any legal action or negotiate, compromise or settle any controversy with respect to any such infringement without first obtaining Chicken Guy's written approval.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, a franchisee cannot register, re-register, claim ownership of, license, or allow others to use the Proprietary Marks without prior written approval from Chicken Guy. The Proprietary Marks include all words, symbols, insignias, designs, trade names, service marks, or combinations that Chicken Guy designates to identify the System. This restriction extends to any mark or name confusingly similar to Chicken Guy's Proprietary Marks.
This means that a prospective Chicken Guy franchisee must understand that they are only granted a limited right to use the Proprietary Marks specifically for operating their franchised restaurant at the approved location. Any unauthorized use or attempt to register the marks constitutes a breach of the franchise agreement and an infringement of Chicken Guy's rights. The franchisee's use of the Proprietary Marks and the goodwill generated from that use benefits Chicken Guy and its affiliates.
This requirement is standard practice in franchising, as franchisors need to protect their brand identity and trademarks. It ensures consistent branding across all franchise locations and prevents franchisees from potentially damaging the brand by using the marks inappropriately. A Chicken Guy franchisee must adhere strictly to the guidelines provided by Chicken Guy regarding the use of its Proprietary Marks.
The franchisee is also obligated to inform Chicken Guy in writing of any infringement of the Proprietary Marks they become aware of and cannot take any legal action regarding such infringement without Chicken Guy's written approval. Chicken Guy has the right, but not the obligation, to take action against infringements and may include the franchisee in such actions. This further emphasizes the franchisor's control over its brand and the franchisee's role in protecting it.