Wiener King

Wiener King is a hot-dog company that currently operates one restaurant located in Mansfield, Ohio. Wiener King was formerly a franchise, but has since closed all but one of their restaurants. The chain was founded in 1970 by Ronald W. Howard, in Charlotte, North Carolina. Wiener King was once one of the fastest growing restaurants in the United States. It was well known for its advertising and publicity.

Founding
In 1970 Ronald Howard, a former plumber from Birmingham, Alabama, formed the Wiener King franchise. Howard had moved to Charlotte in 1968 to take over a local franchise called Pasquale's Pizza. He was quickly able to grow the restaurant from 1 to 18 locations. However he wanted something of his own. Howard noted that hot dogs were a very popular food, but had never been merchandised. He later restated this in an interview in The Charlotte News in 1972.

Marketing
An early marketing strategy of the Wiener King company was making controversial advertisements, which was a very profitable venture. One such advertisement included a then-local Charlotte DJ, Jay Thomas, wearing nothing but a towel and holding a hot dog under his arm. In 1974 at least one TV station refused to air the commercial. In 1975, the company gained attention for blowing up a big hot air balloon that said "Wiener King" on the side, and flying it 50 feet above President Gerald Ford’s visit to Freedom Park. The company commonly ran newspaper advertisements. Their tagline was "King of Hot dogs, USA." The company handed out paper crowns to children, as does the modern restaurant Burger King.

Growth
By 1977 the chain had over 100 locations from New York to Florida, and even had a location as far west as Colorado. At this time, Ronald Howard was incredibly wealthy and owned all of the Wiener King stock. Howard also still ran the company. In 1977, a customer complained that the footlong hot dogs were not, in fact, 12 inches. In response, Howard lengthened the hot dogs to a full 12 inches.

Decline and Bankruptcy
In November 1978 Wiener King filed for Chapter 11 bankruptcy. It was reported to have severe cash flow issues and was unable to settle its debts. The company had rapidly expanded, and the revenue did not match the pace of growth, resulting in financial strain. Additionally, it encountered difficulties in collecting fees from franchise owners. By 1979, Wiener King's headquarters went up for sale.

In 1982 the presiding bankruptcy judge overseeing Wiener King's case concluded that Howard had made false statements and subsequently removed him from his position as president of the company. Allegations surfaced, prompting an FBI investigation into claims of tax evasion and the misappropriation of funds for sustaining the business. A consultant recommended the sale of the company, expressing reservations about Howard's suitability in its management. Creditors harbored hopes that liquidation could be avoided.

In 1983 a Pennsylvania couple acquired the entire company through auction proceedings for $100,000 and relocated its headquarters to their hometown of Easton. They had aspired to revive the Wiener King brand, albeit its prominence waned in the ensuing years. Several Wiener King franchises in Charlotte remained operational but operated under different brand identities. By this juncture, the company had substantially diminished, boasting a mere 40 stores. Notably, approximately $2.5 million of the company's debts remained outstanding and were never repaid.

Post-acquisition
Several Wiener King franchises opted to alter their identities when discontent with their corporate affiliation arose, opting to operate independently. For instance, in 1978, four Wiener Kings located in Greensboro rebranded themselves as "Sally's." Similarly, in 1987 several Wiener Kings changed their name to Wiener Works, subsequently breaking away from the parent company. This trajectory appears to have been followed by multiple Wiener King establishments in the Fayetteville region, originally established in 1973. Presently, four of these establishments continue to operate under their changed names. Many locations of Wiener King are now called Wiener Works, making Wiener Works the restaurant's predecessor.

One store in Mansfield, Ohio currently still operates under the Wiener King name, as do several hot dog carts in North Carolina. The location in Mansfield still operates similarly to how it did when it first opened in 1976. The restaurant is owned and operated by Jimmy Smardjeff. The location is currently at risk of closing.

Ronald W. Howard died 21 February, 2016, at the age of 74. He had moved back to Alabama following the bankruptcy of his company.

Background
In 1980 a two-chain company from New Jersey also called Weiner King (Weiner King, Inc) sued Wiener King (Wiener King Corp) over the use of the name. The New Jersey company had been founded in 1962, 8 years prior to Howard's. Despite using the mark since 1962, Weiner King did not seek federal registration until 1975. Howard's Wiener King had no prior knowledge of Weiner King's existence upon adopting the mark, but expanded its operations extensively across multiple states after learning of Weiner King's existence.

Legal actions and court decisions
Weiner King filed to cancel Howard's federal registrations in 1975, citing prior use. The North Carolina Wiener Kings filed concurrent use applications in 1974, subsequently amending them to acknowledge Weiner King's rights in New Jersey. Weiner King initiated a civil action against Howard's Wiener King in 1975, alleging trademark violations. Concurrent use proceedings were initiated by the PTO, consolidated with the cancellation proceedings, and suspended pending the outcome of the civil action.

The District Court granted Weiner King a preliminary injunction in 1976, restricting Howard's Wiener King's use of the mark within certain areas. It issued a permanent injunction, canceled Howard's Wiener King's registrations, and tasked the PTO with determining the parties' rights. Howard's Wiener King appealed to the Third Circuit Court of Appeals, which reversed and remanded the case in 1976. The Court of Appeals disagreed with the extent of Weiner King's trade territory and directed the PTO to resolve the concurrent use issues. The Court of Appeals ordered the PTO to consider the parties' rights in Beach Haven, New Jersey.

Outcome
The TTAB enunciated several principles for issuing concurrent use registrations or resolving territorial disputes among trademark users. These principles include recognizing the right of a prior user to protection and registration of its mark and acknowledging the right of a good faith and innocent junior adopter to defend its rights within a distinct territory. Emphasizing the Lanham Act's objective to provide nationwide protection for expanding businesses, the TTAB highlighted the need to balance these rights to ensure a marketplace free of confusion. In the case at hand, the TTAB noted Weiner King's localized operations over thirteen years, with limited advertising within 15 miles of Flemington.

It observed the sporadic use and abandonment of Weiner King's Beach Haven facility, leading to a lack of rights in that area. Additionally, the TTAB deemed Weiner King's post-1975 expansions, such as the facility in Warminster, Pennsylvania, belated and lacking good faith. Conversely, Howard's Wiener King's innocent adoption of its mark, extensive expansion efforts, franchising activities, advertising expenditures, and commercial success were duly recognized.

As a result the TTAB restricted Weiner King's rights to a fifteen-mile radius around Flemington, while granting Howard's Wiener King concurrent use rights nationwide, except within Weiner King's trading area. Furthermore, the TTAB recommended denying Weiner King's registration applications unless amended to reflect its rights within the designated trading area. Finally, it determined that Weiner King held no rights in Beach Haven, New Jersey, due to sporadic use and abandonment.