Against whom did Craters & Freighters initiate litigation in 2010 for trademark infringement?
Craters_Freighters Franchise · 2025 FDDAnswer from 2025 FDD Document
In 2010, we initiated litigation against Daisychain Enterprises (dba Freight & Crate), Cathy Benz and Fred Benz ("Defendants") for trademark infringement. The Defendants were using the name "Freight & Crate" in the operation of a business in California similar to a Craters & Freighters Franchised Business. On May 5, 2010, the United States District Court for the Northern District of California issued a permanent injunction against the Defendants. The court permanently restrained and enjoined them from (a) using the infringing mark "Freight & Crate" in conjunction with any shipping or packaging services; (b) using the infringing mark "Freight & Crate" in conjunction with any web-based advertisement or print advertisement; (c) using the infringing mark "Freight & Crate" at any call center to suggest that Freight & Crate is affiliated with Craters & Freighters; (d) identifying themselves anywhere or any time, by their initiative or in response to questions by others, as "Craters & Freighters" or as affiliated with Craters & Freighters; (e) using Craters & Freighters' copyrighted materials in advertisements and promotions; and (f) using the registered trademark "Craters & Freighters" for any purpose whatsoever.
Source: Item 13 — TRADEMARKS (FDD pages 32–34)
What This Means (2025 FDD)
According to the 2025 Craters & Freighters Franchise Disclosure Document, in 2010, Craters & Freighters initiated litigation against Daisychain Enterprises (doing business as Freight & Crate), Cathy Benz, and Fred Benz for trademark infringement. The basis for the lawsuit was the defendants' use of the name "Freight & Crate" in a business operating in California that was similar to a Craters & Freighters franchised business.
The result of the litigation was a permanent injunction issued by the United States District Court for the Northern District of California on May 5, 2010. This injunction prohibited the defendants from using the infringing mark "Freight & Crate" in conjunction with shipping or packaging services, web-based or print advertisements, or at any call center to suggest affiliation with Craters & Freighters. The injunction also prevented the defendants from identifying themselves as "Craters & Freighters" or affiliated with Craters & Freighters, using Craters & Freighters' copyrighted materials, or using the registered trademark "Craters & Freighters" for any purpose.
The FDD further indicates that the legal battles continued, with Craters & Freighters pursuing further action against the same defendants for violating the permanent injunction. This included seeking civil and criminal contempt charges and further litigation related to the defendants' establishment of a Colorado-based company also named Craters & Freighters. This demonstrates the franchisor's commitment to protecting its trademarks, but also highlights the potential for protracted legal disputes and associated costs.