subscribesubscriber servicescontact usabout ussite mapBuy a Classified
Sun, Jul 05 2009 

Resources

print this story   Print this story
  Post to del.icio.us

Published November 12, 2008 05:33 pm - Quaker Steak & Lube Franchising Corp. and QSL Intellectual Properties Corp. have sued a DuBois company, claiming it is continuing to operate a Quaker Steak & Lube restaurant after Quaker Steak terminated the franchise agreement.

Quaker Steak & Lube sues former franchise holder


By Joe Pinchot
Herald Staff Writer

SHARON

Quaker Steak & Lube Franchising Corp. and QSL Intellectual Properties Corp. have sued a DuBois company, claiming it is continuing to operate a Quaker Steak & Lube restaurant after Quaker Steak terminated the franchise agreement.

The Sharon companies — QSL Intellectual controls the Quaker Steak trademarks — also have asked for a temporary restraining order and preliminary injunction to stop Bono Holdings Inc. from operating the Patton Township restaurant as a Quaker Steak and Lube until the suit is resolved.

A woman who answered the telephone at the restaurant Wednesday identified the eatery as a Quaker Steak and Lube. She took a message for Larry Salone, who controls Bono Holdings, and said Salone was not there.

Quaker Steak said it entered into a franchise agreement with Bono on Aug. 1, 2005, for Bono to operate a restaurant in or near State College.

Bono agreed to pay 5 percent of its gross sales to Quaker Steak, in addition to a fee for research, promotion and marketing. Bono has failed to make timely payments of either fee since September 2007, Quaker Steak said in the suit filed Friday.

On Jan. 25, Quaker Steak sent Bono a franchise termination notice saying Bono owed it $57,136 in royalty fees and $8,792 in RPM fees, plus interest. Quaker Steak extended a period to pay all defaults until March 26, but Bono filed for bankruptcy on March 13.

The bankruptcy court allowed Bono to pay Quaker Steak $6,000 a month, and to defer Quaker Steak’s rights until Sept. 8, unless Bono sold the restaurant.

Quaker Steak said it terminated the franchise agreement on Oct. 6 and Bono had 30 days to furnish evidence it was no longer operating a Quaker Steak franchise.

On Nov. 5, Quaker Steak representatives went to the State College restaurant and found that the restaurant was still operating as a Quaker Steak franchise, including using Quaker Steak’s computer software, trademarks, trade dress and trade secrets.



print this story    email this story   




Zillow
monster
autoconx
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide

Have a question
for The Herald?
You are only a click away


Premier Guide
Premium Jobs

See all ads

Premium Autos

See all ads

Premium Homes

See all ads

Premium Extras

See all ads


   

 

Community Newspaper Holdings, Inc.CNHI Classified Advertising NetworkCNHI News Service
Associated Press content © 2009. All rights reserved. AP content may not be published, broadcast, rewritten or redistributed.
Our site is powered by Zope and our Internet Yellow Pages site is powered by PremierGuide.
Some parts of our site may require you to download the Flash Player Plugin.
View our Privacy Policy
Advertiser index