What is a Churchs Chicken franchisee's obligation if they suspect infringement of the copyright?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
You must promptly notify us of any suspected infringement of, or challenge to, the copyright. We will control any administrative proceeding or litigation involving the copyright and will decide whether to pursue any suspected infringer. If we defend or begin litigation relating to the copyright, 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 copyright 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 copyright or to defend you against claims of infringement or unfair competition. Nevertheless, it is ordinarily in our best interest to do so.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 47–49)
What This Means (2025 FDD)
According to the 2025 Churchs Chicken Franchise Disclosure Document, franchisees have a responsibility to promptly inform Churchs Chicken of any suspected copyright infringement or challenges. Churchs Chicken retains control over any administrative or legal proceedings related to the copyright and decides whether to pursue suspected infringers.
If Churchs Chicken decides to defend or litigate the copyright, franchisees must sign necessary documents and cooperate as directed by Churchs Chicken's counsel. Churchs Chicken will cover the franchisee's out-of-pocket expenses, excluding employee salaries, provided the litigation does not arise from the franchisee's unauthorized use of the copyright.
However, Churchs Chicken is not obligated to defend the franchisee's right to use the copyright or protect them against infringement or unfair competition claims, unless the litigation arises due to the franchisee using the copyright in a manner inconsistent with the Franchise Agreement. Despite this, Churchs Chicken states that it is typically in their best interest to do so.