I CAN'T BELIEVE IT'S YOGURT, a Texas limited partnership, Plaintiff, v. DR. MARVIN R. GUNN, MARK R. GUNN and DOUGLAS R. GUNN, Defendants., 1997 U.S. Dist. LEXIS 14480

Summary

The franchisee challenged the order of the district court, which granted the franchisor's request for a preliminary injunction, which ordered the franchisees' to pay for certain royalties on the franchisor's products that the franchisee had sold and prevented the franchisee from continuing to use of the franchisor's trademarks after the parties contractual obligations had been terminated by the franchisor. The court determined that the preliminary injunction was proper because of the irreparable harm that the franchisor would have suffered if the franchisee was allowed to continue to use its trademarks, and ordered that the franchisee pay all royalties up to the date that the franchisees had stopped using the franchisor's trademarks. Additionally, the court found that the franchisee was not entitled to a distribution defense because its obligations to pay royalties and marketing fees were not contingent upon the franchisor's obligation to make its products available for purchase in ...