Does a Churchs Chicken franchisee gain any ownership interest in the Proprietary Marks through the franchise agreement?
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
extent this action inures to the benefit of, and has the prior approval of, Cajun. Any unauthorized use of the Proprietary Marks by Franchisee or attempt by Franchisee, directly or indirectly, to register the Proprietary Marks in any jurisdiction shall constitute a breach of this Agreement and an infringement of the rights of Cajun Funding and Cajun in and to the Proprietary Marks.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, a franchisee does not acquire any ownership interest in the Proprietary Marks, except for the right to use them according to the franchise agreement's terms. The Proprietary Marks remain the sole property of Cajun Funding, an affiliate of Cajun.
The Churchs Chicken franchisee is prohibited from contesting the validity or ownership of the Proprietary Marks, or the right of Cajun Funding and Cajun to license these marks. All usage of the Proprietary Marks by the franchisee, including any goodwill generated, exclusively benefits Cajun Funding, Cajun, and their affiliates.
Furthermore, the Churchs Chicken franchisee cannot seek to register, re-register, claim ownership, license, or allow others to use the Proprietary Marks. Any unauthorized use or attempt to register the Proprietary Marks is a breach of the agreement and an infringement of Cajun Funding's and Cajun's rights. This ensures that Churchs Chicken maintains complete control over its brand and trademarks, preventing franchisees from taking actions that could dilute or misappropriate the brand's identity.