Is a Churchs Chicken franchisee allowed to settle a controversy regarding infringement of the Proprietary Marks without Cajun's approval?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- E. Franchisee promptly shall inform Cajun in writing as to any infringement of the Proprietary Marks of which Franchisee has knowledge. Franchisee shall not make any demand or serve any notice, orally or in writing, or institute any legal action or negotiate, compromise or settle any controversy with respect to any such infringement without Cajun's approval. Cajun shall have the right, but not the obligation, to bring such action or take such steps as it may deem advisable to prevent any such infringement and to join Franchisee as a party to any action in which Cajun is or may be a party and as to which Franchisee is or would be a necessary or proper party. Franchisee also shall promptly notify Cajun of any litigation or proceeding of which Franchisee is aware instituted against Cajun Funding, Cajun, their affiliates or Franchisee relating to the Proprietary Marks. Franchisee shall execute any and all instruments and documents, render such other assistance and do any acts and things as may, in Cajun's opinion, be necessary or advisable to protect and maintain the interests of Cajun Funding and Cajun in the Proprietary Marks, including, without limitation, their interests in litigation or proceedings before the U.S. Patent and Trademark Office, any court, tribunal or other regulatory agency relating to the Proprietary Marks.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to the 2025 Churchs Chicken Franchise Disclosure Document, a franchisee is not allowed to settle any controversy regarding infringement of the Proprietary Marks without Cajun's approval. The FDD states that the franchisee must promptly inform Cajun in writing of any infringement of the Proprietary Marks that they are aware of.
Specifically, the franchisee cannot make any demands, serve any notices, initiate legal action, or negotiate, compromise, or settle any controversy related to such infringement without first obtaining Cajun's approval. Cajun retains the right, but not the obligation, to take any action it deems necessary to prevent infringement, including legal action, and can include the franchisee in any related legal proceedings.
Furthermore, the franchisee is required to execute any documents and provide any assistance necessary to protect Cajun's interests in the Proprietary Marks, including involvement in litigation or proceedings before the U.S. Patent and Trademark Office or any other regulatory agency. This ensures that Cajun maintains control over the protection and enforcement of its trademarks and brand identity, which is a common practice in franchising to maintain brand consistency and value.