After failing to make royalty payments, a Red Robin franchise in Texas is being sued for continuing to use branded logos and goods inside the store.
The strength of an established brand is one of the benefits of buying into a franchise business model. But what happens to the business’s materials after the franchisee exits the franchise? As one restaurant owner in Texas is discovering, permission to use the brand and even in-store brand design elements end at the same time as the legal relationship.
According to the Amarilo Globe News, a former Red Robin franchisee in Amarillo is being sued by the franchisor for failing to cease the use of Red Robin’s branded materials. Since being legally ordered to stop using the Red Robin name and logo, the business owner, Early Bird Amarillo OPS4, covered exterior signage with blue tarps. But reports indicate that the business has continued to use the Red Robin logo, décor, seasoning and other branded content inside the store.