Einstein Bros Bagel Franchise Corporation v. J.F.C. Management Holdings LLC
1:24-cv-03344
D. Colo.Jun 9, 2025Background
- Plaintiffs, Einstein Bros. Bagel Franchise Corporation and Einstein and Noah Corporation, are Colorado corporations licensing the Einstein Bros. Bagels brand.
- Defendant J.F.C. Management Holdings, LLC, operated an Einstein Bros. Bagels restaurant in Miami, Florida, under a license agreement; Ramona D. Hall, a member of JFC, was a personal guarantor under the contract.
- In July 2024, JFC stopped paying royalties, leading to termination of the license in November 2024; despite this, defendants allegedly continued operating using the marks and trade dress.
- Plaintiffs served defendants with the complaint, but no response was filed; a default judgment was sought for trademark infringement, breach of contract, attorney’s fees, and injunctive relief.
- The Court held an evidentiary hearing and reviewed evidence, including photos showing continued use of the marks post-termination.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Jurisdiction and Venue | Contract allowed suit in Colorado, both served | No argument presented | Jurisdiction and venue in Colorado proper |
| Trademark Infringement/Unfair Competition | Defendants used protected marks post-termination | No argument presented | Infringement established by uncontroverted facts |
| Breach of Contract | JFC failed to pay royalties and ceased post-termination duties | No argument presented | Defendants in breach; damages and injunctive relief awarded |
| Attorney’s Fees and Costs | Entitled under contract; amounts reasonable | No argument presented | Full fees and costs granted |
| Injunctive Relief | Needed to prevent ongoing misuse of marks/system | No argument presented | Permanent injunction granted under contract and statute |
Key Cases Cited
- Burger King Corp. v. Rudzewicz, 471 U.S. 462 (U.S. 1985) (forum selection clause gives consent to jurisdiction)
- Drexel Enterprises, Inc. v. Richardson, 312 F.2d 525 (10th Cir. 1962) (federal trademark registration is prima facie evidence of exclusive right)
- Bixler v. Foster, 596 F.3d 751 (10th Cir. 2010) (default judgment is not automatic upon default)
- Williams v. Life Sav. & Loan, 802 F.2d 1200 (10th Cir. 1986) (Court must have both subject-matter and personal jurisdiction for default judgment)
- W. Distrib. Co. v. Diodosio, 841 P.2d 1053 (Colo. 1992) (elements for breach of contract under Colorado law)
- Excell, Inc. v. Sterling Boiler & Mech., Inc., 106 F.3d 318 (10th Cir. 1997) (forum selection clauses generally enforceable)
- Steak n Shake Enterprises, Inc. v. Globex Co., LLC, 110 F. Supp. 3d 1057 (D. Colo. 2015) (terminated franchisee’s continued use of marks is trademark infringement)