What was filed
The complaint is Document 1, filed October 12, 2026, in the U.S. District Court for the District of New Jersey. The case is Gouldsburger's Franchise Systems, LLC v. GB Sicklerville, LLC and Michael Joseph Murray, No. 1:26-cv-13261. It pleads six counts: breach of an oral franchise contract; breach of an oral contract for money loaned; unjust enrichment; trademark infringement under Section 32 of the Lanham Act, 15 U.S.C. § 1114, and state law; unfair competition under Section 43 of the Lanham Act, 15 U.S.C. § 1125(a), and state law; and trade dress infringement under 15 U.S.C. § 1125 and common law. Counsel is Walter W. Gouldsbury III of Ciardi Ciardi & Astin.
What the complaint alleges
GFS says it franchises Gouldsburger's quick-service restaurants in New Jersey and Pennsylvania, owns the Gouldsburger's trademarks, service marks, and trade name, and uses a distinctive pinstripe grey and golden vista color scheme with distinct lettering. It alleges that in early 2025 Michael Joseph Murray sought a franchise, received the Franchise Disclosure Document, formed GB Sicklerville with help from GFS's owners, and agreed to an oral franchise that waived a $44,500 franchise fee, set royalties at 7% of net sales (later 3.5% on third-party delivery app sales), and required a later written Franchise Agreement. It says the Sicklerville location opened on October 9, 2025, and that from about May 2025 through the opening GFS loaned defendants more than $100,000 through cash and check advances, equipment purchases, staff salary, and other payments.
It alleges first-year net sales over $900,000, royalties unpaid since April 2026 totaling more than $26,000 as of October 8, 2026, collection of more than $41,000 in New Jersey sales tax from January through September 2026 without timely filing the Q1 and Q2 2026 returns or remitting the tax, refusal to execute a circulated written Franchise Agreement, and a writing signed by Murray agreeing to terminate operations effective October 9, 2026, while the location remained open as of October 12, 2026. It says GFS sent a Notice of Termination on October 9, 2026, that defendants acknowledged receipt that day, and that the Notice ends their franchise rights effective sixty days after receipt. It alleges that defendants use Gouldsburger's marks and identical trade dress outside the scope of the license. The prayer seeks a declaration that the conduct is grounds for termination, an injunction ratifying and enforcing termination as of the Notice's effective date, compensatory damages of no less than $150,000, damages and profits trebled under 15 U.S.C. § 1117, exemplary or punitive damages, disgorgement, a constructive trust, alter-ego and veil-piercing findings against Murray, interest, and fees.