After termination or expiration of a Churchs Chicken franchise agreement, what actions must the franchisee take regarding the Proprietary Marks?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
(4) Franchisee immediately shall: discontinue all use of the Proprietary Marks in connection with the Franchised Restaurant and of any and all items bearing the Proprietary Marks; remove the Proprietary Marks from the Franchised Restaurant and from clothing, signs, materials, motor vehicles and other items owned or used by Franchisee in the operation of the Franchised Restaurant; cancel all advertising for the Franchised Restaurant that contains the Proprietary Marks (including telephone directory listings); and take such action as may be necessary to cancel any filings or registrations for the Franchised Restaurant that contain any Proprietary Marks.
(5) Franchisee promptly shall make such alterations and modifications to the Franchised Location as may be necessary to clearly distinguish to the public the Franchised Location from its former appearance and also make those specific additional changes as Cajun may request for that purpose, at Franchisee's expense.
If Franchisee fails to promptly make these alterations and modifications, Cajun shall have the right (at Franchisee's expense, to be paid upon Franchisee's receipt of an invoice from Cajun) to do so without being guilty of trespass or other tort.
- (6) Franchisee shall furnish to Cajun, within 30 days after the effective date of termination or expiration of this Agreement, evidence (certified to be true and complete by the Operating Principal) satisfactory to Cajun of Franchisee's compliance with Section 22.A.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, a franchisee must take several actions regarding the Proprietary Marks upon termination or expiration of the franchise agreement. The franchisee must immediately discontinue all use of the Proprietary Marks in connection with the Franchised Restaurant and on any items bearing those marks. This includes removing the Proprietary Marks from the restaurant itself, as well as from clothing, signs, materials, vehicles, and other items used in the restaurant's operation.
Furthermore, the franchisee is obligated to cancel all advertising for the Franchised Restaurant that features the Proprietary Marks, including telephone directory listings. They must also take the necessary steps to cancel any filings or registrations for the Franchised Restaurant that include any Proprietary Marks.
In addition to removing and ceasing the use of the Proprietary Marks, the franchisee must also modify the Franchised Location to clearly distinguish it from its former appearance as a Churchs Chicken restaurant. These alterations should be sufficient to inform the public that it is no longer a Churchs Chicken. The franchisor, Cajun, may also request specific additional changes for this purpose, and the franchisee is responsible for covering the expenses of these modifications. If the franchisee fails to make these changes promptly, Cajun has the right to make the alterations themselves at the franchisee's expense.
Finally, within 30 days after the termination or expiration date, the franchisee must provide Cajun with evidence, certified by the Operating Principal, demonstrating their compliance with these obligations. This evidence must be satisfactory to Cajun and confirm that the franchisee has fully adhered to the requirements regarding the Proprietary Marks.