Legal Question in Intellectual Property in Illinois

Removing franchisee signage

I am a Franchisor, and one of my Franchisees was recently sent a letter to cease and desist doing busniess under our name. He violated his franchise agreement, and has been terminated. However, after 6 months, he has been continuing to use my trademark and company name. He is refusing to remove the sign outside of his store, which bears our company name and trademarked logo. If I were to hire a sign company to take it down, is that legal? Or must I get a court order?


Asked on 1/08/09, 2:17 pm

4 Answers from Attorneys

Justin Lampel Lampel & Associates, P.C.

Re: Removing franchisee signage

If it does not say in the contract that you can remove the sign and if the franchisee purchased the sign theirself you are not going to want to use self help and remove it yourself. You may be forced to file an action.

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Answered on 1/08/09, 2:37 pm
Naheed Amdani Law Offices of Naheed A. Amdani, P.C.

Re: Removing franchisee signage

It depends on the terms of your franchise agreement. You should have your franchise agreement reviewed to see what your rights are and what you are allowed to do. Generally, however, you must file suit against the franchisee.

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Answered on 1/08/09, 2:41 pm

Re: Removing franchisee signage

As the Franchisor your franchise agreement should spell out specifically what process must be followed to terminate the franchise agreement and what the franchisee must do once the agreement is terminated.

You should consult with an attorney to review your franchise agreement and the process this franchisee was terminated. They will then be able to recommend the course of action that is called for in your agreement.

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Answered on 1/08/09, 3:04 pm
David K. Staub Staub Anderson LLC

Re: Removing franchisee signage

I would say it is very unlikely that your franchise agreement gives you the right to unilaterally remove the sign, but you need to carefully review what rights you do have under that agreement.

If the franchise agreement does not spell out clearly that you have the right to use self-help to remove the sign, then the only way you can remove the sign without the ex-franchisee's consent is to get a court order.

One alternative, if the property where the sign is located is leased to the ex-franchisee, is to send a Cease and Desist order to the landlord. If he has the right to remove the infringing sign and fails to do so, he may also be liable to you for trademark infringement. He may have more legal rights to control the premises in his lease than you have in your franchise agreement.

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Answered on 1/08/09, 3:32 pm


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