On December 29, 2017, IHOP Restaurants and IHOP Franchisor had filed the claim at the US District Court for the Southern District of Alabama claiming that Moeini Corporation was unable to honor franchise agreements and, in 2017, failed consecutive operational evaluations.
“This, coupled with the failure of food safety and sanitation evaluations carried out by a third party, resulted in the franchise agreements being terminated after Moeini Corporation neglected to amend concerns,” the claim said.
“Despite defendant’s clear contractual obligation to stop operating its restaurants and cease using IHOP’s trademarks following termination, defendant continues to wrongfully operate the restaurants under the IHOP marks and wrongfully profit from IHOP’s marks, goodwill and system,” it said.
“Defendant has also blocked IHOP and third-party inspectors from evaluating the restaurants, denying IHOP the crucial ability to control the use of the marks,” the claim added.
IHOP is seeking a preliminary and permanent injunction prohibiting Moeini Corporation’s unlawful use of IHOP’s marks.