ST LOUIS – BioLogix Franchise Marketing Corporation has filed a breach of contract lawsuit against a former franchisee it claims has taken steps to operate a competing business.
The biotechnology company, which provides professional grease elimination services, filed the lawsuit against Kay Logic Inc. and the Kay Logic President Edward Kellman on May 7.
According to court documents, Kay Logic became a FMC franchisee in October 2003. On Jan. 19, the company informed the FMC it wasn’t renewing the franchise agreements that were set to expire Feb. 28. From Jan. 19 to May 1, both parties tried to negotiate new franchise agreements, but were unsuccessful.
On May 1, FMC sent a letter to the defendants requesting “with all post-expiration requirements in franchise agreements. Those requirements include returning all trade secrets and confidential information to FMC and paying all monies owing to FMC through the date of termination, with interest.” FMC also requested that the defendants “confirm they would comply with their post-expiration obligation to not compete with FMC.”
The complaint alleges that Kay Logic failed to respond to FMC regarding its compliance with any of the post-expiration obligations. It further states the defendants “are preparing to and have taken affirmative steps to operate a business that competes with FMC in the assigned territories in Michigan and in other territories.”
Another allegation is, “Defendants have changed their assumed name from ‘BioLogix of Southeast Michigan Inc.’ to ‘Biokleen of Southeast Michigan.’”
FMC is asking the court for a temporary restraining order and injunction against Kay Logic, saying it “will be immediately and irreparably harmed by defendant’s continued use of FMC’s marks and use of its goodwill.” FMC alleges breach of contract and misappropriation secrets, among other counts.
The defendants are asking for damages “in an amount to be determined at trial, plus pre-judgment and post-judgment interest on the amount awarded.” They also ask for attorneys’ fees and expenses.
FMS is represented by Christopher Pickett and Davis Simmons of Greensfelder, Hemker & Gale PC in St. Louis.