Former Red Robin Franchisee Sued for Still Using Franchise Goods

A Red Robin franchisee lost its rights to use the Red Robin brand some 18 months ago in Amarillo, Texas, after getting behind in its royalty payments. The same franchisee has gotten in hot water again after it was learnt that its still operating as a Red Robin inside the store, despite removing franchise trademarks from outside the building.

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Red Robin is suing the former franchisee which is located on West Interstate 40, according to Amarillo Globe News .

District Judge Don Emerson signed a temporary restraining order on July 30 mandating Early Bird Amarillo OPS4, the limited partnership that operates the store, cease its use of Red Robin International's trademarked and copyrighted materials.

According to the report, the exterior signage on the store is covered with blue tarps, however once inside the store, menus and employee apparel still boasted the Red Robin logo. A large Red Robin statue graced the decor, Red Robin seasoning sat on the tables and Red Robin gift cards filled a lobby rack.

"Red Robin International is suing Early Bird and Bryan Cumby, a company principal, for allegedly defaulting on the Amarillo store's franchise agreement with the chain. The defendants have challenged the restraining order, which was issued Aug. 1.," the report read.