IP Law Daily, TRADEMARK NEWS: Chester's alleges franchisee is still using its marks after agreement ended, (Aug 18, 2025)

By Steven Melendez

The chicken chain sued a convenience store operator for trademark infringement, alleging it's still advertising with the registered Chester's name and logo.

Chester's International, LLC, the Alabama company that operators the fried chicken restaurant chain, sued J.R.'s Country Stores, LLC, which it says is infringing its CHESTER'S trademark by continuing to use its name and logo after a franchise agreement ended (Chester's International, LLC v. J.R.'S Country Stores, Inc., No. 1:25-cv-02550-MDB (D. Colo. filed Aug. 15, 2025)).

Chester's traces its history back to a donut business started by its founder in Montgomery, Alabama, in 1952, with its "Chester the Chicken" mascot appearing in 1965, according to a complaint filed in the case in Colorado federal court. The business became known as "Chester Fried" in 1974, and the company claims it began using CHESTER FRIED marks—which are currently registered with the U.S. Patent and Trademark Office—as early as March 1985.

The name later transitioned simply to Chester's, and the registered mark CHESTER'S has been used "in connection with batters, marinades and restaurant services" since at least August 2004, according to the complaint. The company says the mark is now incontestable under the federal Lanham Act. Chester's now claims more than 1,200 restaurants across the United States and Canada.

Some Chester's restaurants are franchises, who are licensed to use the marks as part of an agreement to operate the restaurants in certain ways, using Chester's confidential information including recipes and technology. Chester's alleges it entered into a franchise agreement with J.R.'s in November 21, 2017, allowing the company to operate a Chester's "restaurant-in-store" at its convenience store in Rocky Ford, Colo.

The restaurant ran through 2022, when the agreement "terminated by its terms on November 21, 2022," according to the complaint. Yet, Chester's alleges, the convenience store operator continued to use the Chester's marks to sell fried chicken despite a provision of the franchise agreement that specifically said it would stop doing so when the agreement ended.

On April 10, 2025, Chester's sent a cease-and-desist letter to J.R.'s, but the company "did not substantively respond" and didn't take down Chester's signage or stop using the chicken chain's marks, according to the complaint, which includes photos and Google Maps images, as well as J.R.'s website screenshots, showing the Chester's name and logo.

Chester's complaint includes counts of trademark infringement, unfair competition, and false advertising under the Lanham Act, as well as unfair competition under common law, breach of contract, and unjust enrichment.

The chicken chain seeks preliminary and permanent injunctions barring J.R.'s further use of the marks, passing off its products as Chester's, or further unfair competition. The company also asked the court to order J.R.'s to return operating manuals and other materials containing confidential information, as well as any materials with Chester's marks, and to "eliminate" any advertising using the Chester's marks.

Chester's also seeks an accounting and for J.R.'s to turn over any "gains, profits, and advantages" from the alleged infringement, as well as damages, costs, and fees.

The Case is No. 1:25-cv-02550-MDB.

Judge: Braswell, M.

Attorneys: Airina Lynn Rodrigues (Brownstein Hyatt Farber Schreck LLP) for Chester's International, LLC.

Companies: Chester's International, LLC; J.R.'S Country Stores, Inc.

News: Trademark ColoradoNews