What are the potential consequences if the right to use the 'HCK Hot Chicken' trademark is challenged?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
The following statement applies to the third mark in the table above: We do not have a federal registration for our principal trademark. Therefore, our trademark does not have many legal benefits and rights as a federally registered trademark. If our right to use the trademark is challenged, you may have to change to an alternative trademark, which may increase your expenses.
If it becomes advisable at any time, in our sole discretion, for us and/or you to modify or discontinue using any Mark and/or use one or more additional or substitute trademarks or service marks, you must comply with our directions within a reasonable time after receiving notice. We will not reimburse you for your direct expenses of changing signage, for any loss of revenue or other indirect expenses due to any modified or discontinued Mark, or for your expenses of promoting a modified or substituted trademark or service mark.
We will indemnify you for and defend you against any claim brought against you by a third party that your use of the Marks, in accordance with the Franchise Agreement, infringes upon that party's intellectual property rights. We may require your assistance, but we will exclusively control any proceeding or litigation relating to our Marks. We have no obligation to pursue any infringing users of our Marks. If we learn of an infringing user, we will take the action appropriate, but we are not required to take any action if we do not feel it is warranted. You must notify us within three days if you learn that any party is using the Marks or a trademark that is confusingly similar to the Marks. We have the sole discretion to take such action as we deem appropriate to exclusively control any litigation or administrative proceeding involving a trademark licensed by us to you.
Source: Item 13 — TRADEMARKS (FDD pages 40–41)
What This Means (2025 FDD)
According to Hck Hot Chicken's 2025 Franchise Disclosure Document, because the 'HCK Hot Chicken' trademark is not federally registered, it lacks the full legal protections of a registered trademark. If Hck Hot Chicken's right to use this trademark is challenged, franchisees may be required to switch to an alternative trademark. This change could lead to increased expenses for the franchisee.
Furthermore, if Hck Hot Chicken decides to modify or discontinue a trademark, franchisees must comply with the company's directions within a reasonable timeframe after receiving notice. However, Hck Hot Chicken will not reimburse franchisees for any direct expenses related to changing signage, loss of revenue, or other indirect costs resulting from the modified or discontinued mark. Franchisees are also responsible for covering the expenses of promoting any modified or substituted trademark.
Despite these potential risks, Hck Hot Chicken states that they will indemnify and defend franchisees against any third-party claims that the franchisee's use of the trademarks, in accordance with the Franchise Agreement, infringes upon the third party's intellectual property rights. While Hck Hot Chicken may require the franchisee's assistance, they will maintain exclusive control over any legal proceedings related to their marks. Franchisees are obligated to notify Hck Hot Chicken within three days if they become aware of any unauthorized use of the marks or confusingly similar trademarks by another party, allowing Hck Hot Chicken to take appropriate action.