What is a Chicken Guy franchisee's obligation if they become aware of an infringement of the Proprietary Marks?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
- **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.
Franchisee shall execute any and all instruments and documents, render such other assistance and do any acts and things as may, in the opinion of Chicken Guy's counsel, be necessary or advisable to protect and maintain Chicken Guy's interests in the Proprietary Marks, including, without limitation, Chicken Guy's interests in litigation or proceedings before the U.S.
Patent and Trademark Office or other tribunal 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, a franchisee is required to promptly inform Chicken Guy in writing if they become aware of any infringement of the Proprietary Marks. The term Proprietary Marks refers to all words, symbols, insignia, devices, designs, trade names, service marks or combinations thereof designated by Chicken Guy as identifying the System. Chicken Guy will advise franchisees regarding any additions or deletions to these marks.
However, the franchisee is not allowed to independently take any legal action or make any demands related to the infringement without first obtaining written approval from Chicken Guy. This means a franchisee cannot serve notices, initiate lawsuits, or negotiate settlements on their own.
Chicken Guy retains the right, but not the obligation, to take action to prevent any infringement. Chicken Guy can also include the franchisee in any legal action related to the Proprietary Marks if it deems necessary or appropriate. The franchisee must also promptly notify Chicken Guy of any litigation instituted against Chicken Guy, its affiliates, or the franchisee relating to the Proprietary Marks.
Furthermore, the franchisee is obligated to execute any documents and provide any assistance that Chicken Guy's counsel deems necessary to protect Chicken Guy's interests in the Proprietary Marks. This includes assisting with litigation or proceedings before the U.S. Patent and Trademark Office or other tribunals.