Franchises

THANKSGIVING EDITION [FROM THE ARCHIVES]: Court Protects Quizno’s Franchise Turkey Trade Secrets

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This Thanksgiving, Trade Secrets Watch is serving a delicious tale about protecting trade secrets in a franchising relationship.

In 1994, Quizno’s entered into a franchise agreement with Robert Kampendahl, an enterprising fellow who wanted to open up a Quizno’s sandwich shop in St. Charles, Illinois. Unfortunately, Kampendahl didn’t keep his food equipment clean, used unapproved foods, and had safety and sanitation problems, so Quizno’s terminated the franchise agreement. Upon termination, Kampendahl was subject to a covenant not to compete that prohibited him from opening a competing sandwich shop within five miles. READ MORE →

Win At All Costs?: A Glimpse Into Trade Secrets In The Sports And Entertainment Industry

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It is one of those magical times during the year when sports fanatics can enjoy three major American sports all at the same time: the MLB playoffs are in full swing; the NFL season has finally kicked off; and the NHL saw the puck drop for the first regular season game a couple weeks ago. But between the throngs of fans cheering (or booing) their teams, we at TSW wanted to take a moment to reflect on the sophisticated trade secrets disputes that are at the heart of the sports and entertainment industry. READ MORE →

THE RESTAURATEUR’S DILEMMA: Should Owners Force Chefs to Sign NDAs?

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Should restaurateurs wonder eachtime they hire someone: Will this person steal their recipes — the bread and butter of their business?

Trade secret law offers limited comfort. Restaurant owners who have pursued such recipe bandits on trade secret misappropriation grounds have a mixed win-loss record. And like a fine paring knife, trade secret law can cut two ways: while it can help protect intellectual property, enforcing these laws in the restaurant business may also drive talent away. Would Michelin restaurant SPQR’s executive chef Matthew Accarrino have joined if he had been required to sign an employment agreement stating that any recipes developed during his employment become the intellectual property of the restaurant? Probably not. READ MORE →

NEW YEAR’S RESOLUTION EDITION: As Americans Trudge to the Gym, We Review Trade Secrets Fights in the “New You” Industry

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The gyms are packed, the diet cookbooks are flying off the shelves, and smokers are struggling to kick the habit.  It’s the resolution season, and surveys say half of the top 10 most popular new year’s goals aim for better health.  Entire industries exist to serve these pledges:  everywhere you look, someone is touting a new diet or exercise “secret.”  Some of these “new-you” purveyors claim their formulas are actually trade secrets, and have gone to court to protect them.  But are they really so secret? READ MORE →

THANKSGIVING POST: Court Protects Quizno’s Franchise Turkey Trade Secrets

Posted on

This Thanksgiving, Trade Secrets Watch is serving a delicious tale about protecting trade secrets in a franchising relationship.

In 1994, Quizno’s entered into a franchise agreement with Robert Kampendahl, an enterprising fellow who wanted to open up a Quizno’s sandwich shop in St. Charles, Illinois.  Unfortunately, Kampendahl didn’t keep his food equipment clean, used unapproved foods, and had safety and sanitation problems, so Quizno’s terminated the franchise agreement. Upon termination, Kampendahl was subject to a covenant not to compete that prohibited him from opening a competing sandwich shop within five miles. READ MORE →