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Native New Yorker Franchise Sues Former Franchisees For Continued Use of Trademarks.

PHOENIX, February 13, 2009 -- The Native New Yorker restaurant chain filed suit today against two former franchisees who continued to operate a Native New Yorker restaurant after the franchise agreement was terminated.

Native New Yorker Franchising, Inc filed a lawsuit in U.S. District Court for the District of Arizona against Claude and Jane Doe Massicott, a husband and wife whose franchise was cancelled for failure to pay monthly royalties and advertising fees per their contract.

The Massicotts entered into the franchising agreement in May 2005. In January, 2009 Native New Yorker informed the Massicotts that $16,385.29 was past-due in royalty and advertising payments. After making a partial payment in February, Native New Yorker exercised its contractual rights to terminate the franchise agreement.

Despite the termination of the agreement, the Massicotss continued to operate a Native New Yorker restaurant, which includes continuing to use Native New Yorker's federally registered trademaks, trade secrets, recipes, trade dress and operating system.

The complaint as filed states causes of action for breach of contract, trademark infringement, unfair competition, and false designation of origin. In addition to monetary compensation and injunctive relief, Native New Yorker is also seeking attorneys fees.