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Bob Obtains a Franchise to Operate a "Tofu Sweets" Retail

Question 44

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Bob obtains a franchise to operate a "Tofu Sweets" retail dessert store.All of the store's desserts are tofu-based.Each dessert treat has a trademarked name,and is made using a secret formula and process.As a franchisee,Bob purchases some of the items ready to sell,but others must be individually prepared in the store.After operating the store for a few months,Bob starts buying the tofu for the items made in the store from another source because it is less expensive.The quality is not as high,but most customers do not seem to notice the difference.The franchisor terminates Bob's franchise,but he immediately opens his own store under the name "Sweet Tofu Treats" and begins selling products identical to those that were prepared at the "Tofu Sweets" store.What claims could the "Tofu Sweets" franchisor bring against Bob? Discuss each of them.

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