Texas chain sues restauranteur.

Fast-food giant Whataburger sues smaller NC chain, What-A-Burger #13, for trademark infringement. #Corporate #Law #Texas #NorthCarolina

Texas Chain Giant Sues Smaller Competitor

Whatabrands, LLC (parent co. of Whataburger) filed a lawsuit against What-A-Burger #13, alleging trademark infringement & contract violation. Whataburger, founded in Texas in 1950, takes issue with the smaller chain, which emerged in NC in 1969, and its recently created LLC, WAB #13.

"Local news outlets in North Carolina began speculating as early as 2022 about Whataburger’s potential expansion into the state,”
-- according to the suit.

Mutual Agreement or Deception?

The suit states that a mutual agreement was signed by both parties in May 2023, allowing each to operate under certain conditions to minimize brand confusion. This included the use of names for their Physical locations and food trucks. However, Whataburger alleges that What-A-Burger #13 created an LLC beforehand without disclosure, thus violating and terminating the contract.

Whataburger, with over 940 locations across 15 states, is now asking the courts to force What-A-Burger #13 to change its name as it moves into NC, with the first store opening in Charlotte.