What was the basis for the litigation initiated by Craters & Freighters against Daisychain Enterprises?
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.
In early 2014, it came to our attention that the Defendants were violating the permanent injunction and using our name to advertise products online. In February 2014, we sent the Defendants a letter to demand that they cease from using the words "Crate & Freight" and that they comply with the permanent injunction. In March 2014, we sought for the Defendants to be held in civil and criminal contempt for violating the permanent injunction. The Defendants were ordered to appear in court in May 2015 to show cause why they should not be held in contempt for failure to comply with the permanent injunction. In August 2015, the Defendants, proceeding pro se, filed an appeal relating the multiple judgments we have obtained against them thus far, which currently total more than $100,000 and are collecting interest at the maximum amount allowed under California law. We submitted our Answering Brief in September 2015, and the United States Court of Appeals for the Ninth Circuit in D.C. No. 14-17497 rendered a decision that the lower District Court's Orders Stand – i.e., we (Craters & Freighters Franchise Company) are the prevailing party.
Source: Item 13 — TRADEMARKS (FDD pages 32–34)
What This Means (2025 FDD)
According to Craters & Freighters' 2025 Franchise Disclosure Document, the litigation against Daisychain Enterprises (dba Freight & Crate), Cathy Benz, and Fred Benz was initiated in 2010 due to trademark infringement. Craters & Freighters alleged that the defendants were using the name "Freight & Crate" in a business similar to a Craters & Freighters franchised business.
The initial legal action resulted in a permanent injunction issued by the United States District Court for the Northern District of California on May 5, 2010. This injunction restrained the defendants from using the infringing mark "Freight & Crate" in conjunction with shipping, packaging services, web-based or print advertisements, or at any call center to suggest affiliation with Craters & Freighters. The injunction also prohibited the defendants from identifying themselves as "Craters & Freighters" or using Craters & Freighters' copyrighted materials and registered trademarks.
Later, in early 2014, Craters & Freighters discovered that the defendants were violating the permanent injunction by using their name to advertise products online. This led to further legal actions, including a letter demanding compliance and a motion to hold the defendants in civil and criminal contempt. By August 2015, the judgments against the defendants totaled more than $100,000, accruing interest under California law. The United States Court of Appeals for the Ninth Circuit ultimately upheld the lower court's orders, ruling in favor of Craters & Freighters.