Antitrust Law Daily Wrap Up, FRANCHISING & DISTRIBUTION—D. Colo: Former sub shop franchisee agrees to deidentify store, (May 4, 2015)
Law Firms Mentioned:Cheng Cohen, LLC | Mark W. Gerganoff, LLC
Organizations Mentioned:Best Sub Enterprises, Inc. | Cheng Cohen Law Firm | QFA Royalties LLC | Qfa Royalties, LLC | Tasty Sub Enterprises, Inc. | The Quizno's Master LLC
By Michael Menzhuber, J.D., LL.M.
A restaurant franchisor’s motion for a preliminary injunction against former franchisees for Lanham Act violations and breach of contract was resolved by an agreement of the parties and the entry of a stipulated injunction by the federal district court in Denver. Under the stipulation, the former franchisee agreed to deidentify the former franchise location (QFA Royalties LLC v. Tasty Sub Enterprises, Inc., May 1, 2015, Brimmer, P.).
QFA Royalties LLC and the Quizno’s Master LLC (franchisor) entered in a franchise agreement with Tasty Sub Enterprises, Inc., Best Sub Enterprises, Inc., Abbas Ghanei, and Azita Ghanei (former franchisees) to operate a Quizno’s sub restaurant in Tulsa, Oklahoma. After the termination of their franchise agreement, the former franchisees began operating a restaurant known as the “Downtown Deli” at the same location as their former Quizno’s restaurant.
The franchisor filed motion for a preliminary injunction against the franchisees which sought to enjoin them from: (1) infringing on the franchisor’s trademarks and trade dress, in violation of the Lanham Act; (2) engaging in unfair competition, in violation of the Lanham Act; and (3) breaching post-termination non-competition obligations under the franchise agreements.
To avoid further expenses in litigating the franchisor’s motion, and without any admission of liability or wrongdoing on the part of the franchisees, the parties requested that the court enter a stipulated injunction. The stipulated injunction, which required the franchisees to cease selling sandwiches and to make certain physical modifications to their restaurant to distinguish it from a Quizno’s restaurant, was accepted and entered by the court.
The case is No. 15-cv-00407-PAB-CBS
Attorneys: Aaron-Michael Hanchett Sapp (Cheng Cohen, LLC) for QFA Royalties LLC, and The Quizno's Master LLC. Mark Widmann Gerganoff (Mark W. Gerganoff, LLC) for Tasty Sub Enterprises, Inc., and Best Sub Enterprises, Inc.
Companies: QFA Royalties LLC; The Quizno's Master LLC; Tasty Sub Enterprises, Inc.; Best Sub Enterprises, Inc.
Cases: FranchisingDistribution ColoradoNews