Even a blog can get the flu. Sorry for the posting lag but the blog is sick. As the latest victim of the flu epidemic, the blog took ill over the weekend and is still recuperating. But ever the faithful reporter (and not one to put its own blog health ahead of franchise news), the blog presents franchise news from its sick bed.
The Cheezborger Case Settles. In a settlement filed on Friday, The Billy Goat Tavern agreed to dismiss its lawsuit against Cheeburger Cheeburger, a Florida restaurant chain. As reported in the blog last week, The Billy Goat Tavern is a bar in Chicago that was the inspiration for the "Cheezborger, Cheezborger" skit on Saturday Night Live. When Billy Goat learned about Cheeburger Cheeburger's plans to open a restaurant in a Chicago suburb, it filed a lawsuit claiming trademark infringement. The parties settled the case by agreeing that Cheeburger Cheeburger would not open any restaurants within 125 miles of Chicago with the exception of the restaurant already in development. The parties also agreed that the restaurant under construction would be permitted to open but it could only be identified as Cheeburger (that is, one Cheeburger). The restaurant's owner must order new signs and the double Cheeburger designation must be removed from menus, napkins and any other printed material.
McDonald's Announces Plans to Sell Donato's Pizzeria. Ending months of speculation, McDonald's announced that it would sell the Donato's restaurant chain (182 units) back to its original owner, Jim Grote for an undisclosed amount. Grote sold the chain to McDonald's in 1999 as one of McDonald's partner brands. The partner brands, however, have been a drain on McDonald's resources, losing a combined $66.8 million last year. While McDonald's plans to develop its other partner brands (Chipotle and Boston Market) have been limited, the burger giant has refused to sell the chains too cheaply. McDonald's will continue to review the growth potential of its remaining partner brands and has closed or will be closing all non-US partner brands restaurants.
Dairy Queen Jumps Into Burger Fray. Launching a burger concept is not easy, but Dairy Queen is betting that $40 million invested in an advertising campaign and an overhaul of their concept of its successful concept will be enough to help Dairy Queen compete with burger giants like McDonald's and Burger King. Dairy Queen has 6,000 stores in the US, Mexico and Asia.
Posted by franchiselawblog at December 16, 2003 03:19 PM