Fantastic Sams Franchise Corporation v. Sadat et al. (D. Mass. 21-cv-11810).

  • November 9, 2021

Fantastic Sams Franchise Corporation franchises haircut salons throughout the country.  Fantastic Sams accuses Mariam and Nadia Sadat of continuing to utilize the Fantastic Sams trademarks following termination of their franchise agreements.  The Sadats ran three different salons in California under the franchise agreement, which included a forum selection clause designating Massachusetts as the venue for disputes.  Fantastic Sams says that the Sadats signed three different franchise agreements that required fixed weekly license fees and payment to regional and national advertisement funds.  Upon termination, the agreements required immediate cessation of use of the Fantiastic Sams trademarks, trade dress, business format and advertising, to pay whatever moneys remained due, and to return all Fantastic Sams materials.  The complaint alleges that the Sadats defaulted on their payment obligations on two of the franchises in May 2021, after which these agreements were terminated (the third franchise location was permanently closed, effectively terminating the third agreement).  Despite this, the Sadats are said to have continued operating the two remaining salons utilizing the Fantastic Sams marks without authorization, and that they refused to pay the money due under the franchise agreements.  Fantastic Sams asserts trademark infringement, unfair competition, and breach of contract.

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