Krispy Kreme Doughnut Corp. has won an injunction blocking a delinquent franchisee from operating in New York’s Pennsylvania Station and another location.
A federal judge granted the preliminary injunction to the doughnut maker on the grounds that franchisee Satellite Donuts was behind on its obligations under its agreements with Krispy Kreme and is in violation of the Lanham Act.
Judge Lewis A. Kaplan made that ruling after considering allegations by Krispy Kreme that Satellite was infringing its marks by continuing to operate without authorization and diluting the marks by making substandard doughnuts in Krispy Kreme Doughnut Corp. v. Satellite Donuts, LLC, 10 Civ. 4272. Satellite Donuts filed for Chapter 11 bankruptcy and had an automatic stay under §362(a), but the bankruptcy court modified the stay to allow Krispy Kreme to pursue its injunction before Kaplan.
