Antitrust Law Daily Wrap Up, FRANCHISING & DISTRIBUTION NEWS: Franchisor of Country Hearth Inns sues to prevent infringement at former franchise location, (Sep 25, 2015)

By Peter Reap, J.D., LL.M.

Vantage Hospitality Group, the franchisor of a nationwide group of motels that operate under its COUNTRY HEARTH INN federally registered trademark, has filed suit in the federal district court in Miami, accusing Radhe Hotel 294, Inc. and its two principals of displaying the franchisor’s marks at the location of a former franchise without Vantage’s authorization.

According to the complaint, defendant Radhe acquired a motel (“the property”) that had been operated by a terminated Country Hearth Inn franchisee. Thereafter, the individuals operated the property as if it was still an authorized franchisee of Vantage’s system, continuing the unauthorized display of one or more of the franchisor’s marks on signs in connection with offering hospitality services at the property. In addition, the individual defendants continue to answer the phone at the property identifying the motel as a Country Hearth Inn location. These actions by the defendants are likely cause confusion in the marketplace with respect to the association of the defendants with Vantage, the suit alleges.

Vantage asserts claims under the Lanham Act for service mark infringement, counterfeiting, and false designation of origin. The franchisor requests injunctive relief enjoining the defendants from using any marks confusingly similar to Vantage’s marks. Vantage requests an accounting of the defendants’ wrongfully obtained profits, compensatory damages, and its costs and attorney fees.

The complaint in Vantage Hospitality Group, Inc. v. Radhe Hotel 294 Inc., Case No. 0:15-cv-62005-WPD, was filed September 22, 2015.

Attorneys: Moish Peltz (Peretz Chesal & Herrmann, PL) for Vantage Hospitality Group, Inc.

Companies: Vantage Hospitality Group, Inc.; Radhe Hotel 294 Inc.

News: FranchisingDistribution FloridaNews