Does the Churchs Chicken franchise agreement grant the franchisee any ownership rights to the Proprietary Marks?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees that: (1) nothing in this Agreement gives it any right, title or interest in the Proprietary Marks (except the right to use the Proprietary Marks in accordance with the terms of this Agreement); (2) the Proprietary Marks are the sole property of Cajun's affiliate, Cajun Funding; (3) Franchisee shall not directly or indirectly contest the validity or ownership of the Proprietary Marks or the right of Cajun Funding and Cajun to license the Proprietary Marks; and (4) any and all uses by Franchisee of the Proprietary Marks and the goodwill arising therefrom shall inure exclusively to the benefit of Cajun Funding, Cajun and their affiliates.
Franchisee will not seek to register, reregister, assert claim to ownership of, license or allow others to use, or otherwise appropriate to itself any of the Proprietary Marks or any mark or name confusingly similar thereto, or the goodwill symbolized by any of the foregoing except to the
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to the 2025 Churchs Chicken Franchise Disclosure Document, franchisees do not acquire any ownership rights to the Proprietary Marks. The agreement explicitly states that the franchisee only has the right to use the Proprietary Marks in accordance with the franchise agreement terms. All rights, titles, and interests in the Proprietary Marks remain the sole property of Cajun Funding, an affiliate of Churchs Chicken.
This means a Churchs Chicken franchisee's rights to use the trademarks, trade names, service marks, logos, and other brand identifiers are strictly limited to operating their franchised restaurant. The franchisee cannot claim ownership, contest the validity, or attempt to register the Proprietary Marks. Any goodwill generated through the franchisee's use of the marks benefits Cajun Funding and Churchs Chicken.
Furthermore, the franchisee is prohibited from using the Proprietary Marks in any unauthorized manner, including on vehicles without prior approval or as part of any internet domain name or social media profile without consent. They must also include specific indications in any required filings that they are using the marks as a franchisee of Cajun Global LLC. This ensures that Churchs Chicken maintains control over its brand identity and prevents franchisees from misusing or misappropriating the Proprietary Marks.
This arrangement is typical in franchising, where the franchisor retains ownership of the brand and trademarks, granting franchisees a limited license to use them. This protects the brand's uniformity and reputation across all franchise locations. Franchisees benefit from using a recognized brand, but they must adhere to the franchisor's guidelines and cannot claim ownership of the brand assets.