Hotel Franchise Termination: Preliminary Injunctions Protect Unlawful Trademark Use

ABSTRACT

Hotel franchise companies license the use of their trademarks, name, logo, and operating procedures to their franchisees in return for the ongoing payment of franchise fees. When a hotel owner fails to pay money owed for franchise fees or fails to adhere to the operational or other requirements, the hotel franchise company will be forced to terminate the franchise. The Lanham Act allows protection to a hotel company for the property rights that exist in their trademarks, logo, and name by allowing for the registration of those marks and by providing for the use of preliminary injunctions granted by federal courts to stop the unlawful use of valid trademarks. This paper explains how hotels can make use of such tools to protect their bottom line.