Why ramada inns terminated the franchise agreement


Case Scenario: Ramada Inns, Inc. (Ramada Inns) is a franchisor that licenses franchisees to operate motor hotels using the Ramada Inns trademarks and service marks. The Gadsden Motel Company (Gadsden), a partnership, purchased a motel in Attalla, Alabama, and entered into a franchise agreement with Ramada Inns to operate it as a Ramada Inns motor hotel. Issue: Ramada Inns terminated the franchise agreement, citing quality deficiencies and Gadsden's failure to pay past-due franchise fees. Gadsden continued using Ramada Inns signage, trademarks, and service marks inside and outside the motel. Ramada Inns sued Gadsden for trademark infringement. Critical Legal Thinking Question: Who wins? See Ramada Inns, Inc. v. Gadsden Motel Company, 804 F.2d 1562, 1986 U.S. App. Lexis 34279

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