In 7-Eleven Inc. v. Puerto Rico-7 Inc., 2009 WL 4723199 (N.D. Tex. Dec. 9, 2009), a federal district court in Texas granted summary judgment against a franchisee who continued to operate its convenience stores after being terminated. The court found that the franchisee had breached its franchise agreement by failing to make required payments to the franchisor and failing to comply with its development schedule for additional stores. The court further found that the franchisor had properly terminated the franchise and advised the franchisee that it was no longer entitled to operate its stores under the franchisor’s trademarks. The court held that the franchisee’s continued use of the franchisor’s trademarks without permission would cause irreparable harm to the franchisor, and ordered the franchisee to cease all use of the franchisor’s trademarks. The court also awarded the franchisor its attorneys’ fees.
The Franchise Memorandum