Antitrust Law Daily Wrap Up, FRANCHISING & DISTRIBUTION—S.D. Fla.: Past due fees, injunctive relief sought against former restaurant franchisee, (Jul 15, 2016)
Law Firms Mentioned:Genovese Joblove & Battista, P.A.
Organizations Mentioned:Genovese Joblove & Battista, PA | Panagg Café Inc. | Tim Hortons USA Inc. | Tim Hortons USA, Inc.
A former franchisee and it guarantors breached their franchise agreement with Tim Hortons USA Inc. (THUSA) by failing to pay recurring fees and to comply with a post-termination requirement to cease using the THUSA marks and system, according to a complaint filed in the federal district court in Miami (Hortons USA Inc. v. Panagg Café Inc., July 13, 2016).
According to the complaint, Panagg Café Incorporated (PCI) entered into a franchise agreement with THUSA to operate a Tim Hortons café and bake shop store. The franchise agreement provided, among other things, that PCI was required to pay various recurring fees and, in the event the franchise agreement was terminated, to cease identifying itself as a Tim Hortons store and to cease using any of THUSA’s marks and systems. PCI’s obligations under the franchise agreement were personally guaranteed by Gurvinder Singh, Ashna Walia, and Adarsh Walia.
The complaint further states that THUSA terminated the franchise agreement after PCI and its guarantors breached the agreement by failing to make payments for fees due and, that after the franchise agreement was terminated, continuing using THUSA marks to identify their store as a Tim Hortons store.
THUSA asserts claims for: (1) Lanham Act infringement; (2) Lanham Act false designations; (3) trademark infringement; (4) unfair competition; (5) breach of franchise agreement; and (6) breach of guarantee. The action seeks to enjoin the defendants from using THUSA’s marks, retaining THUSA’s proprietary promotional materials and operating system manuals, and from operating a competing business within a two-mile radius of the store. The action also seeks money damages, treble damages, punitive damages, pre-judgment interest, compensatory damages, attorneys’ fees and costs.
The case is No: 1:16-cv-23041-JEM.
Attorneys: Michael D. Joblove and Jessica Serell Erebaum (Genovese Joblove & Battista, P.A.) for Tim Hortons USA Inc.
Companies: Panagg Café Inc.; Tim Hortons USA Inc.
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