I operate a video store in a small country town about an hour and a half from the states capital city. I have been buying donuts from a donut retailer, and because they are so good, I am driving to the capital city, buying the goods at retail price, and reselling them in my store (To save customers a 1 1/2 hour drive).
I am charging a price that will make me profit. I have asked this company if I can buy in bulk directly from them, but was told that they have a franchise agreement with a chain of convenience stores, and cannot sell to me.
I have now been contacted by the parent company to say that I cannot resell their product. (The convenience store has no problem because it is just more sales for them).
I was under the impression, that as long as I do not use their logo or their name, that they cannot stop me from selling due to restriction of trade. Is this correct?
I am charging a price that will make me profit. I have asked this company if I can buy in bulk directly from them, but was told that they have a franchise agreement with a chain of convenience stores, and cannot sell to me.
I have now been contacted by the parent company to say that I cannot resell their product. (The convenience store has no problem because it is just more sales for them).
I was under the impression, that as long as I do not use their logo or their name, that they cannot stop me from selling due to restriction of trade. Is this correct?
