What must a Churchs Chicken franchisee do if they suspect infringement of the 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.
Source: Item 13 — TRADEMARKS (FDD pages 45–47)
What This Means (2025 FDD)
According to the 2025 Churchs Chicken Franchise Disclosure Document, a franchisee must promptly notify Churchs Chicken of any suspected infringement of, or challenge to, their Proprietary Marks. Churchs Chicken maintains control over any administrative proceeding or litigation involving their Proprietary Marks and decides whether to pursue any suspected infringer.
If Churchs Chicken decides to defend or begin litigation relating to the Proprietary Marks, the franchisee must sign all documents and take actions deemed necessary by Churchs Chicken's counsel to carry out the defense or prosecution. Unless the litigation arises from the franchisee's use of the Proprietary Marks in a manner inconsistent with the Franchise Agreement, Churchs Chicken will reimburse the franchisee for their out-of-pocket costs in fulfilling these requirements, excluding employee salary costs.
However, the FDD clarifies that Churchs Chicken is not obligated by the Franchise Agreement to defend the rights granted to the franchisee to use the Proprietary Marks or to defend the franchisee against claims of infringement or unfair competition, unless the litigation is a result of the franchisee using the Proprietary Marks in a way that violates the Franchise Agreement. The document states that it is ordinarily in Churchs Chicken's best interest to do so.