After termination or expiration of the Chicken Guy franchise agreement, what must the franchisee do regarding domain name registrars and listing agencies?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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.
Franchisee is not entitled to any compensation from Chicken Guy if Chicken Guy exercises these rights or options.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to the 2025 Chicken Guy FDD, if a franchisee has used the Proprietary Marks in connection with the internet, any website, or any Electronic Identifier, they must take specific actions upon termination or expiration of the franchise agreement. At Chicken Guy's option, the franchisee must either cancel or assign to Chicken Guy (or its designee) all rights to any websites, Electronic Identifiers, or registrations that contain the Proprietary Marks.
Specifically, the franchisee is required to notify Verisign (Network Solutions), register.com, or other applicable domain name registrar, as well as all listing agencies, about the termination or expiration of their right to use any Electronic Identifier associated with the Chicken Guy system, the Proprietary Marks, or the franchised restaurant. Furthermore, the franchisee must authorize and instruct these registrars and agencies to cancel or transfer the Electronic Identifier to Chicken Guy, as directed by Chicken Guy.
The Chicken Guy FDD states that the franchisee is not entitled to any compensation from Chicken Guy if Chicken Guy exercises these rights or options. This provision ensures that Chicken Guy maintains control over its brand and online presence, preventing former franchisees from potentially misusing the brand or confusing customers after the franchise agreement ends. This is a fairly standard practice in franchising, as franchisors typically want to ensure consistent brand representation and prevent any potential damage to their reputation.