Laurel-based Cluck-U balks at new chicken shack

Cluck-U Corp., the Laurel-based chicken chain that requires customers to sign a waiver when ordering the hottest of its hot sauces, is turning up the heat on a former franchisee in Calvert County.

According to a federal trademark lawsuit filed in U.S. District Court in Greenbelt, Gary and Jennifer Armstrong backed out of the franchise agreement but continue to profit from Cluck-U's brand recognition and recipes.

The Armstrongs -- both of whom were Cluck-U employees, too -- also have attempted to convince other franchisees to terminate their agreements, the complaint alleges.

"Defendants violated the Franchise Agreement in various ways, including but not limited to, operating a restaurant at the Franchised Location not in compliance with the Franchise Agreement, continuing to use the Cluck-U Trademarks, Cluck-U Trade Dress and the Cluck-U Trade Secrets and failure to comply with termination duties and the confidentiality and non compete clause," the suit states.

Efforts to reach Gary Armstrong, former vice president of franchise sales at Cluck-U, and Jennifer Armstrong, former assistant to Cluck-U's acting president, on Monday were unsuccessful.

Their Dunkirk restaurant is now called Heavenly Chicken and Ribs. Karen Denny, who identified herself as the manager on Monday, declined to comment on the allegations.

Cluck-U has licensed more than 20 restaurants in Maryland, surrounding states and the nation of Lebanon, according to its Web site. Its attorneys at the Washington, D.C., office of Bell, Boyd & Lloyd LLP did not return calls seeking comment yesterday.

The lawsuit seeks declaratory judgments on the franchise contract and state and federal intellectual property claims. It also seeks an injunction, disgorgement, treble and punitive damages, and attorneys' fees.

Cluck-U, founded in New Jersey in 1985, is notable for its yellow and purple graphics and its wide array of chicken wing sauces -- to try the hottest of which, "911," the customer must sign a waiver. It counts "Cluckwich" and "It's an addiction" among its registered marks, the suit states.

In July 2006, Cluck-U permitted the Armstrongs' CUC Dunkirk Inc. to open its franchise, according to the suit. CUC Dunkirk and Armstrong Cos. Inc., which operates the restaurant, are also named defendants.

Last month, the Armstrongs announced their intention to "rescind" their agreement two weeks later, at which point they covered the exterior signage of their restaurant with a banner reading, "Heavenly Chicken and Ribs," according to the suit.

But they continued to use other of Cluck-U's intellectual property and operate a restaurant from the location, even after being notified that these actions violated the franchise agreement, the suit alleges.

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