Texas chain sues restaurant over 'What-A-Burger' name

Texas-based fast food chain Whataburger has sued a small North Carolina restaurant, What-A-Burger #13, for trademark infringement.

"Local news outlets in North Carolina began speculating as early as 2022 about Whataburger’s potential expansion into the state." - Whataburger lawsuit

Whatabrands, LLC, Whataburger's parent company, filed the lawsuit last week, claiming violation of a mutual agreement between the two companies. The larger chain, founded in 1950, announced its expansion into North Carolina in April 2024, with the first location in Charlotte.

The agreement, dated May 19, 2023, allowed both companies to operate under certain conditions to minimize brand confusion. It stipulated that each company could use its name in their existing physical locations and their single food truck. However, Whataburger alleges that What-A-Burger #13 created an LLC, WAB #13, before the agreement, and failed to disclose this, thereby violating the contract. As a result, Whataburger is asking the court to force What-A-Burger #13 to change its name.

Whataburger has over 940 locations across 15 states, with more than 700 in Texas, where it was founded in 1950. The company expanded further after being acquired by Chicago-based BDT Capital in 2020.