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Owner of College Drive IHOP told to close by chain alleging breach of contract, payment delinquency

2 days 16 minutes 20 seconds ago Wednesday, February 19 2025 Feb 19, 2025 February 19, 2025 12:12 PM February 19, 2025 in News
Source: WBRZ

BATON ROUGE — The owner of the IHOP on College Drive's franchisee is being sued by the breakfast chain after allegedly keeping the pancake house open after the expiration of a franchise agreement, federal court records indicate.

The suit, filed Feb. 10 in the federal court for the Middle District of Louisiana, says the franchise contract expired on Jan. 30.

According to the lawsuit, the owner, which first entered the agreement in 2009, was required to close the restaurant, which sits near the Interstate 10 exit of College Drive. Instead, the restaurant is still open.

IHOP's legal team alleges that the expiration of the franchise agreement came after the franchisee owed $440,000 in past-due rent, royalties, advertising fees and other payments.

Continued operation of the restaurant under the IHOP brand is a breach of contract and the continued use of IHOP's branding is a copyright violation, the suit alleges. The chain's legal team says this could "cause IHOP to suffer irreparable harm."

"The continued unauthorized operation irreparably harms IHOP’s brand and goodwill, as customers associate their negative experiences at the Defendant’s unauthorized location with IHOP’s broader restaurant system," the suit says.

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