What’s up with the two Rosati’s?

Basically, there's a family dispute at play. In the late 1990s to 2000s, Rosati's operated as a family-owned entity called Rosati's Franchise Systems, Inc. (RFSI). RFSI had 10 shareholders divided between:

  • the "Anthony Rosati" faction (7/10 shareholders)
  • the "Rick Rosati" faction (3/10 shareholders)

Based on a separate document, the Plantiffs' Response to Defendants' Motion to Dismiss, this family quarrel has been a long-standing dispute that culminated in 1998 when the stakeholders fully executed a "Rosati’s Pizza License Agreement”. They agreed that:

RFSI would retain all rights, title, and interests in the Rosati’s trademarks and trade recipes, but would suspend franchising Rosati’s restaurants. In lieu of franchises, the parties agreed that RFSI would issue licenses to each of the ten RFSI shareholders, allowing them to sublicense the Rosati’s Trademarks and recipes. The shareholders also agreed that the existing franchises would be divided among the shareholders of RFSI.

They also entered into a marketing cooperative to better manage their branding and advertisement. However, a major conflict of issue arose when the Rick Rosati party took ownership of the rosatispizza.com and rosatis.com domains. The Anthony Rosati party alleges that the Rick Rosati party removed all non-Rick Rosati locations from the site and disparaged Anthony Rosati locations as "knock offs".

The judge dismissed the counts of "trademark infringement, false designation of origin, or misappropriation", but does not dismiss "misleading statements of fact or usurpation of a corporate opportunity". Generally, this landed on favorable terms for the Rick Rosati party which is why they still have ownership of both domains and continue to exist alongside the Anthony Rosati party.

/r/chicago Thread Parent