After termination or expiration of the Chicken Guy franchise agreement, is a franchisee allowed to use the Proprietary Marks on the internet without Chicken Guy's consent?
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.
(7) If Franchisee has used the Proprietary Marks, in whole or in part, in connection with the Internet, any Website or any Electronic Identifier, whether or not authorized by Chicken Guy, then Franchisee shall, at Chicken Guy's option, cancel or assign to Chicken Guy, or Chicken Guy's designee, all of Franchisee's rights, title and interest in any Websites, Electronic Identifiers or registrations that contain or previously contained the Proprietary Marks, or any of them, in whole or in part, and Franchisee shall notify Verisign (Network Solutions), register.com, or other applicable domain name registrar and all listing agencies, upon the termination or expiration of this Agreement, of the termination of Franchisee's right to use any Electronic Identifier associated with the System, the Proprietary Marks or the Franchised Restaurant, and authorize and instruct their cancellation or transfer to Chicken Guy, as directed by Chicken Guy.
For the avoidance of doubt, nothing in this Section 23.A.(7) shall be deemed to permit Franchisee to use the Proprietary Marks, or any of them in whole or in part, in connection with the Internet or any Electronic Identifier, except with Chicken Guy's prior written consent as provided in this Agreement.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Chicken Guy Franchise Disclosure Document, franchisees are not permitted to use the Proprietary Marks on the internet or any electronic identifier without prior written consent from Chicken Guy, even after the termination or expiration of the franchise agreement. The term Proprietary Marks includes all words, symbols, trade names or service marks that Chicken Guy designates for identifying the Chicken Guy system.
Upon termination or expiration of the agreement, franchisees must immediately discontinue all use of the Proprietary Marks and Chicken Guy's trade secrets. This includes removing the Proprietary Marks from the restaurant, clothing, signs, vehicles, and any other items used in the operation. Franchisees also must stop using any websites or electronic identifiers associated with the Proprietary Marks and cancel all advertising containing the Proprietary Marks.
Moreover, if a franchisee has used the Proprietary Marks on the internet, any website, or any electronic identifier, Chicken Guy has the option to require the franchisee to cancel or assign all rights to those websites or electronic identifiers to Chicken Guy or its designee. The franchisee must also notify the domain name registrar and listing agencies of the termination of their right to use any electronic identifier associated with the Chicken Guy system and authorize its cancellation or transfer to Chicken Guy. The franchisee is not entitled to any compensation if Chicken Guy exercises these rights.
To further protect the brand, franchisees are also required to make alterations to the physical location to clearly differentiate it from its former appearance as a Chicken Guy restaurant. If the franchisee fails to do so, Chicken Guy has the right to make these alterations at the franchisee's expense. These measures ensure that upon termination or expiration, the franchisee completely ceases to represent or trade on the Chicken Guy brand, protecting the integrity and exclusivity of the Proprietary Marks.