Tinder Box International Sues Former Franchise in Maryland

Tinder Box International, Ltd.—the franchisor of the Tinder Box brand—is suing one of its former franchises for trademark infringement, breach of contract, failure to pay royalties and misappropriation of trade secrets.

That store is The Box Waldorf MD, a business that was part of the Tinder Box franchise network for 25 years. In February, the store’s franchise licensing agreement came to an end, and the owners of the store—listed as Manjoth Raj Singh and Sumit Gupta—decided not to renew the franchise agreement.

The lawsuit, Tinder Box International, Ltd. v. Waldorf Cigar Bar and Loung,e LLC, Manjoth Raj Singh, and Sumit Gupta was filed in the U.S. District Court for the Eastern District of Pennsylvania. Tinder Box’s lawsuit is broken up into four basic parts. The first, trademark infringement, is pretty straightforward. Tinder Box International claims that the store rebranded itself as “The Box Waldorf MD,” which Tinder Box says is a trademark violation. It has produced evidence showing that in some instances, the store has just covered the “TINDER” portion of “Tinder Box” and replaced it with “THE”.

There’s also a variety of claims that the store is continuing to use the Tinder Box name on signage, branded goods and bags for loose cigars. As of June 23, the store’s Facebook page still uses the Tinder Box name in various places.

Franchisee covenants that, except as otherwise approved in writing by Franchisor, Franchisee shall not, for a continuous uninterrupted period commencing upon the expiration or termination of this Agreement (regardless of the cause for termination) and continuing for one (1) year thereafter, either directly or indirectly, for itself, or through, on behalf of, or in conjunction with any person, persons, partnership, or corporation, own, maintain, operate, engage in, provide assistance to, or have any interest in any business which offers goods or services which are the same as or similar to any of the goods and services offered by Franchisee or by other stores under the System, including but not limited to tobacco products, coffee/espresso products, pipes, smokers’ accessories and supplies, gifts and collectibles, or any of such products, and which business is, or is intended to be, located within a twenty-five (25) mile radius of the Approved Location, or otherwise engage in unfair competition with Franchisor.

Arguably the most important part of the case is the third count, breach of contract. Tinder Box International claims that the franchise agreement contains a non-compete clause that prevents a former franchise owner from operating a business within a 25 miles radius of the former franchise that sells similar products—it specifically mentions tobacco products, coffee/espresso products, pipes, smokers’ accessories and supplies—for one year after the franchise agreement comes to an end. In short, Tinder Box International claims that The Box Waldorf MD shouldn’t be selling cigars, pipes and accessories until February 2024.

Tinder Box International also claims that the defendants failed to pay Tinder Box International its royalty—4 percent of gross sales—for Feb. 1, 2023-Feb. 11, 2023. Tinder Box International also claims that it is entitled to liquidated damages, which would be 6 percent of the gross sales for each month when the franchise agreement is being violated.

There’s also a count pertaining to the misappropriation of trade secrets. In short, Tinder Box International claims that the defendants continue to use the “Tinder Box International System,” the training that Tinder Box provides its franchises.

In 1928, the first Tinder Box location was opened in California by Ed Kolpin. In 1959, Kolpin began franchising the Tinder Box name and it grew to be, at its peak, the largest specialty tobacco retailer in the U.S. Today, there are just 23 locations listed on the Tinder Box International website, one of which is the retailer in question: the (former) Tinder Box in Waldorf, Md.