factual

What rights does a Chicken Guy franchisee have to the Proprietary Marks under the franchise agreement?

Chicken_Guy Franchise · 2025 FDD

Answer from 2025 FDD Document

e agrees not to publish, disseminate, implement, revise, or rescind a data privacy policy without Chicken Guy's prior written consent.

  • (3) Franchisee shall notify Chicken Guy in writing within 5 days after the commencement of: (a) any action, suit or proceeding, or the issuance of any order, writ, injunction, award or decree of any court, agency or other governmental instrumentality, which may adversely affect the operation or financial condition of Franchisee or the Franchised Restaurant; or (b) of any notice of violation of any law, ordinance or regulation relating to health or sanitation at the Franchised Restaurant.
  • N. Customer Service Satisfaction and Secret Shopper Programs. In order to (among other things) maintain and enhance the goodwill associated with the Proprietary Marks, the System and each Chicken Guy! Restaurant, Franchisee agrees to participate in programs initiated to verify customer satisfaction and/or Franchisee's compliance with all operational and other aspects of the System, including (but not limited to) customer service satisfaction program, secret shoppers or other programs as Chicken Guy may require. Chicken Guy will share the results of these programs, as they pertain to the Franchised Restaurant, with Franchisee. Franchisee will reimburse Chicken Guy for all costs related to the Franchised Restaurant associated with any and all of these programs.

15. PROPRIETARY MARKS

  • A. Scope. The term "Proprietary Marks" as used in this Agreement refers to all words, symbols, insignia, devices, designs, trade names, service marks or combinations thereof designated by Chicken Guy as identifying the System and the products sold and services provided in connection with the System. Chicken Guy shall, from time to time, advise Franchisee as to any additions or deletions to the Proprietary Marks, and Franchisee's right to use the Proprietary Marks shall be deemed modified by those additions or deletions.
  • B. Limited Right To Use Proprietary Marks. Franchisee's right to use the Proprietary Marks is limited to its use of the Proprietary Marks in the operation of the Franchised Restaurant at the Franchised Location and as expressly provided in this Agreement and the Manual. Franchisee shall not use the Proprietary Marks on any vehicles without Chicken Guy's prior written approval. Franchisee shall not modify the Proprietary Marks in any manner in connection with Franchisee's display of, or creation or duplication of materials bearing, the Proprietary Marks. Franchisee shall not use the Proprietary Marks or any variations of the Proprietary Marks or marks or names confusingly similar to the Proprietary Marks in any manner not authorized by Chicken Guy or in any corporate, limited liability company or partnership name and shall not use any other trade names, service marks or trademarks in conjunction with the

Franchised Restaurant. If local laws or ordinances require that Franchisee file an affidavit of doing business under an assumed name or otherwise make a filing indicating that the Proprietary Marks are being used as a fictitious or assumed name, Franchisee shall include in such filing or application an indication that the filing is made "as a franchisee of Chicken Guy (Franchisor), LLC." Franchisee shall use the symbol ® with all registered marks and the symbol ™ with all pending registrations or other marks.

**C.

Source: Item 22 — CONTRACTS (FDD page 50)

What This Means (2025 FDD)

According to Chicken Guy's 2025 Franchise Disclosure Document, a franchisee's right to use the Proprietary Marks is limited. The term "Proprietary Marks" includes all words, symbols, designs, trade names, and service marks that Chicken Guy designates to identify the System. Chicken Guy can modify these marks, and the franchisee's right to use them will be adjusted accordingly.

The franchisee can only use the Proprietary Marks in the operation of their franchised restaurant at the approved location, as outlined in the franchise agreement and operations manual. They need written approval from Chicken Guy to use the marks on vehicles and cannot modify the marks in any way. The franchisee is prohibited from using the Proprietary Marks or similar variations in any unauthorized manner, including in their corporate name. When required by local laws, the franchisee must indicate in filings that they are using the marks as a franchisee of Chicken Guy.

Chicken Guy retains control over the Proprietary Marks to maintain the System's identity and standards. The franchisee's use of the marks is a license, and they cannot claim ownership or contest the validity of the marks. Any goodwill generated from the use of the marks benefits Chicken Guy. The franchisee cannot register or allow others to use the Proprietary Marks without Chicken Guy's approval. Unauthorized use of the marks is a breach of the agreement and an infringement of Chicken Guy's rights. The franchisee must inform Chicken Guy of any infringement of the Proprietary Marks and cannot take any action regarding infringement without written approval from Chicken Guy.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.