Who controls litigation involving Churchs Chicken's Proprietary Marks?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
You must promptly notify us of any suspected infringement of, or challenge to, our Proprietary Marks. We will control any administrative proceeding or litigation involving our Proprietary Marks and will decide whether to pursue any suspected infringer. If we defend or begin litigation relating to the Proprietary Marks, you must sign all documents and do what our counsel believes is necessary to carry out the defense or prosecution. Unless the litigation arises as a result of your use of the Proprietary Marks in a manner inconsistent with the Franchise Agreement, we will reimburse you for your out-of-pocket costs in doing these things (except that you will still bear the salary costs of your employees). Otherwise, we are not obligated by the Franchise Agreement, or otherwise, to defend the rights granted to you to use the Proprietary Marks or to defend you against claims of infringement or unfair competition. Nevertheless, it is ordinarily in our best interest to do so.
If we find it necessary to modify or discontinue the use of a particular trademark or service mark as a result of litigation, or otherwise substitute different Proprietary Marks for use in identifying the System and the Restaurants operating under the System, you must immediately use the new marks in place of the old marks on your receipt of our notice to do so.
Source: Item 13 — TRADEMARKS (FDD pages 45–47)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, Churchs Chicken maintains control over any litigation involving its Proprietary Marks. Specifically, Churchs Chicken will decide whether to pursue any suspected infringer of its marks. This means that as a franchisee, you are required to promptly inform Churchs Chicken of any potential infringement or challenges to their Proprietary Marks.
If Churchs Chicken decides to defend or initiate litigation related to the Proprietary Marks, franchisees are obligated to sign necessary documents and cooperate as directed by Churchs Chicken's counsel to support the legal proceedings. Unless the litigation arises due to the franchisee's unauthorized use of the Proprietary Marks, Churchs Chicken will cover the franchisee's out-of-pocket expenses, excluding employee salaries, incurred during the process.
However, Churchs Chicken is not obligated to defend the franchisee against claims of infringement or unfair competition, unless it is in Churchs Chicken's best interest to do so. This arrangement is typical in franchising, as the franchisor needs to protect its brand and trademarks, which are essential to the entire franchise system. If Churchs Chicken finds it necessary to modify or discontinue a trademark due to litigation, franchisees must immediately adopt the new marks upon notification.