What is a Chicken Guy franchisee required to do to assist Chicken Guy in protecting its interests in the Proprietary Marks?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
s determined by Chicken Guy without any liability to Franchisee, and Franchisee promptly shall adopt that name. Franchisee agrees that nothing in this Agreement gives it any right, title or interest in the Proprietary Marks (except the right to use the Proprietary Marks in accordance with the terms of this Agreement), that the Proprietary Marks are the sole property of Licensor, Chicken Guy and their affiliates, that Franchisee shall not directly or indirectly contest the validity or ownership of the Proprietary Marks or Chicken Guy's right to license the Proprietary Marks, and that any and all uses by Franchisee of the Proprietary Marks and the goodwill arising therefrom shall inure exclusively to the benefit of Licensor, Chicken Guy and their affiliates. 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.
- E. Notice of Infringement. 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. Chicken Guy shall have the right, but not the obligation, to bring such action or take such steps as it may deem advisable to prevent any such infringement and to join Franchisee as a party to any action in which Chicken Guy is or may be a party and as to which Franchisee is or would be a necessary or proper party. Franchisee also shall promptly notify Chicken Guy of any litigation (including administrative or arbitration proceedings) of which Franchisee is aware instituted against Chicken Guy, its affiliates or Franchisee relating to the Proprietary Marks.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Chicken Guy's 2025 Franchise Disclosure Document, franchisees have several obligations to protect the company's proprietary marks. Franchisees must promptly inform Chicken Guy in writing of any infringement of the Proprietary Marks that they become aware of. They cannot make any demands, serve notices, start legal action, or negotiate settlements regarding infringements without Chicken Guy's written approval. This ensures Chicken Guy maintains control over how its trademarks are defended.
Chicken Guy has the right, but not the obligation, to take action against infringements and can include the franchisee in any related legal proceedings. Franchisees must also execute documents, provide assistance, and perform actions deemed necessary by Chicken Guy's counsel to protect the Proprietary Marks, including involvement in litigation or proceedings before the U.S. Patent and Trademark Office. This could involve providing evidence, testifying, or signing legal documents as needed.
Furthermore, franchisees cannot contest the validity or ownership of the Proprietary Marks. They are also prohibited from registering, licensing, or appropriating the Proprietary Marks or any confusingly similar marks for themselves, except with Chicken Guy's prior written approval. Any unauthorized use or attempt to register the marks is a breach of the franchise agreement and an infringement of Chicken Guy's rights. These measures ensure that the brand's trademarks remain exclusive to Chicken Guy and are consistently protected against misuse or unauthorized exploitation.
In the event that Chicken Guy chooses to use a different name to identify the system, the franchisee must change all items bearing the Proprietary Marks to the new name within a reasonable time frame, as determined by Chicken Guy. Franchisees must also include specific language in any filings or applications indicating that they are a franchisee of Chicken Guy, LLC when using the Proprietary Marks as a fictitious or assumed name. Franchisees must use the appropriate symbols (® for registered marks and ™ for pending registrations) with all Proprietary Marks.