N.D. Ga.

Local Pizza Chain Sues Former New Jersey Franchisee

Home-Grown Industries of Georgia, Inc. v. Mellow Mushroom of Toms River, LLC et al, Civil Action No. 1:22-cv-04919-SCJ (N.D. Ga., Dec. 13, 2022)

Atlanta’s own Mellow Mushroom brings suit for trademark infringement, unfair competition, and breach of contract against a former franchisee operating in Tom’s River, New Jersey. Mellow Mushroom accuses the Defendants of violating the terms of their franchise agreement by failing to strictly comply with their commitments and obligations. In addition, Defendants are accused of infringing the Mellow Mushroom marks and other distinct marketing methods in their Tom’s River restaurant location since the franchise agreement terminated.

According to the complaint, the agreement contained terms related to a non-competition covenant and post-termination obligations. Mellow Mushroom now accuses the Defendants of continuing to operate the restaurant despite the termination of the licensing and franchise agreements. Further, the Plaintiff seeks damages as stipulated under the franchise agreement of around $400,000.

The case has been assigned to Judge Steve CarMichael Jones.

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