A Saskatchewan judge has ruled that a local pizza franchise must stop using its current name after a dispute with the franchise owner.
The legal battle began when Vern’s Pizza franchise owner, Vern Wagar, filed a lawsuit against the franchisee of the Saskatoon location, claiming that they were using the name without his permission. Wagar argued that the use of the name was causing confusion among customers and damaging the reputation of his brand.
After hearing arguments from both sides, Justice Richard Elson of the Court of Queen’s Bench ruled in favor of Wagar, ordering the Saskatoon location to immediately stop using the name Vern’s Pizza. The judge also ordered the franchisee to pay Wagar $30,000 in damages and legal fees.
In his decision, Justice Elson stated that the franchisee had breached their franchise agreement by using the name without Wagar’s consent. He also noted that the franchisee had failed to provide evidence that they had been granted permission to use the name.
The franchisee’s lawyer argued that they had been using the name for over 30 years and that Wagar had never raised any objections until now. However, Justice Elson dismissed this argument, stating that the franchise agreement clearly stated that the franchisee must obtain written consent from Wagar before using the name.
This ruling has significant implications for the franchisee, who will now have to rebrand their business under a different name. It also serves as a reminder to all franchisees to carefully review their franchise agreements and obtain written consent before using any trademarks or names associated with the franchise.
Wagar expressed relief and satisfaction with the court’s decision, stating that he had worked hard to build his brand and was pleased that the judge recognized the importance of protecting it.
The franchisee has not yet commented on the ruling, but it is expected that they will comply with the court’s order and begin the process of rebranding their business.
This legal battle serves as a cautionary tale for all franchise owners and highlights the importance of carefully following franchise agreements to avoid potential disputes.
