Aurelio's Files Infringement Lawsuit Against Franchise Operator
Lawsuit contends that the owner of the Frankfort Aurelio's improperly cooked up frozen pizzas under Aurelio's name and has a history of misusing the company's federally registered trademark.
A local Aurelio’s Pizza franchise operator has been accused of selling counterfeit pizzas at a fundraiser benefiting the Homewood-Flossmoor High School girls’ field hockey team.
A lawsuit filed last week by Aurelio’s is Pizza, the restaurant’s parent company based in Homewood, contends that Joseph Pascale, owner of the Frankfort location, intentionally committed trademark infringement, dilution and counterfeiting when he contracted with Teresa Food Inc. to make machine-manufacture frozen pizzas with unauthorized ingredients.
The pizzas were then wrongfully sold as Aurelio’s brand pizzas at a Homewood-Flossmoor High School athletic fundraiser on Oct. 7, according to Kirk Mauriello, Aurelio’s director of franchising.
It "hurts our brand because people believe they’re buying an Aurelio’s pizza when, in fact, they’re not,” he said.
Franchise owners are given specific instructions about ingredients, distributors and preparation, which prohibits machine-made pizzas, and “any variation changes the product,” he said.
What’s more, Pascale has been accused of breach of contract because Aurelio’s does not permit the sale of any wholesale frozen pizzas.
After a company investigation, Aurelio’s believes that this is not an isolated incident but consistent with at least six years worth of selling wholesale frozen pizzas to other local sports teams, including a group of gymnasts in Joliet. The lawsuit estimates that Pascale sold more than 100,000 unauthorized pizzas in the last decade.
In federal court, the parent company is seeking financial and punitive damages yet to be specified, a preliminary injunction on selling wholesale pizzas, and a destruction of all labels and products falsely bearing the Aurelio’s trademark.
According to the lawsuit, the parent company caught Pascale selling wholesale frozen pizzas to a local gas station eight years ago, and Pascale promised at the time not to misuse the Aurelio’s trademark again.
Mauriello said the parent company is considering revoking its franchise agreement with Pascale, who also owns a share in Aurelio’s restaurants in New Lenox and Morris.
On Monday, Pascale said he was “blind-sided” by the lawsuit but would need to speak with his attorney and investigate the parent company's claim before commenting further.
Peotone-based Teresa Food, also named in the lawsuit, declined to comment.
In 1959, Joe Aurelio opened the original Aurelio’s in Homewood, which, along with the Richton Park location, remains family-owned. The franchise has since spread to 43 locations in six states.
As for an apology, Mauriello said, the Aurelio’s in Homewood would reach out to the Homewood-Flossmoor High School girls’ field hockey team to host a pizza party and plans to make a donation to the team.
In This article
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Homewood-Flossmoor Community High School
999 Kedzie Ave, Flossmoor, IL -
Aurelio's
18162 Harwood Ave, Homewood, IL -
Aurelio's
9901 W. Lincoln Hwy, Frankfort, IL
Belinda
3:43 pm on Monday, October 24, 2011
Well now that is just wrong. I purchased 4 pizzas from a neighbor girl on the field hockey team. My son said the pizzas sure didn't taste like Aurelio's. Now i know why.
James
10:20 pm on Monday, October 24, 2011
Take a hike lady, he is a good, hard working family man
Deb Morgan-Nelson
7:11 am on Tuesday, October 25, 2011
Good hard working family men make mistakes, he was warned before and continued to do the fundraisers. Greed apparently got the best of him. I am really sad that so many youth organizations are going to be drug into this mess.
Alex
10:41 pm on Monday, October 24, 2011
Maybe if you could read, you would have read the label on the pizza's that states, some of the ingredients are not the same as an actual Aurelio's Pizza. If you have ever bought a California Pizza Kitchen frozen pizza, it doesn't taste the same as when you go to the restaurant. Because OBVIOUSLY you can't use the same fresh ingredients because it is frozen....
Joe has been nothing but a nice, hard working, & caring guy in our community. He has always sent free pizza's to funerals, school functions/fundraisers at the following schools: Mokena, Frankfort, New Lenox, and many Lincoln-Way's. He has donated his time and money to many community fundraisers and organizations. He was selling these pizzas as a fundraiser for sport teams. He wasn't by any means trying to rip people off.
Winston Wolf
11:02 pm on Monday, October 24, 2011
The fact that Mr. Pascale engages in public relations does not mean that he can misuse the Aurelio's trademark.
Deb Morgan-Nelson
7:13 am on Tuesday, October 25, 2011
Trust me, he was making money from the fundraisers. Not billions, but putting athletes and their parents to work selling your products (and especially somethign as well known locally as Aurelios) makes even the smallest margin workable.
DebraAlt
7:12 am on Wednesday, November 2, 2011
Aurelio's in Homewood has been an institution that generously supports its community and its organizations and serves delicious, one of a kind pizza. It's a shame that a franchise would take it upon itself to ruin this business' reputation by serving a poor product. Come to the original Aurelio's and taste the difference!
cathy
7:27 am on Tuesday, October 25, 2011
that not right he know it was wrong !!!!
OLY
8:32 am on Tuesday, October 25, 2011
I knew (the late) Joe Aurelio and Joey Pascale and his family for well over 40 years. And I can tell you that if Joe A told Joey it was OK to have those pizzas made this way, for that purpose, then that is what happened. Joey is one of the most honest, reputable and community conscious men I know. STOP the bashing and let the court sort it out!!!!!!
Deb Morgan-Nelson
8:40 am on Tuesday, October 25, 2011
The courts will certainly sort it out, I just feel bad for everyone else that was brought into this. If there was an arrangement that went around the franchise agreement, that should have been in writing. Any successful business owner knows that, and if there was a verbal agreement, why didn't all the franchises do fundraisers? I know that the Homewood restaurant has supported every youth organization in the area over hte years!
Opinion 1
9:25 am on Tuesday, October 25, 2011
As the old saying goes, there are two sides to every story. The Patch has placed information out to the public because that is the nature of their business - to report news. This issue is between 2 business owners which is how it should be settled. For the parents / guardians from H/F and any other team who contracted with this business - remember it is a business transaction and from the Patch reports, restitution is in process. Seriously, who are we to judge anyone?
Niki
10:32 pm on Tuesday, October 25, 2011
I agree with Alex. Joe is a very hardworking, family man. He does so much for other people and their communities. If you haven't noticed at any funeral,schools,community events and/or fundraisers you always see Aurelios pizzas! Frankfort location is the only location I will go to because
Of joe and all he does. :)
Niki
10:50 pm on Tuesday, October 25, 2011
I had my rehearsal dinner at frankfort for my wedding(and many other family events) and couldn't of been happier with the food and service!! It was so perfect! Thanks for making my special day so nice Joe!! It was so nice to have everything taken are of when we
For there!
Darin Johnson
2:06 am on Wednesday, October 26, 2011
So from what I am reading here it's ok to cheat out a parent company as long as your a nice guy and donate pizzas from time to time? To have a deal set up with Teresa's on the down low sounds real shady to me. Maybe he is a great guy but how anyone can read this article and be so dissmissive is beyond me, a lot of "good family men" get greedy and do dumb things, just ask a few of our former Governors....
NANCY GRACE
9:44 am on Wednesday, October 26, 2011
Well said Darin. It's all about milkn the cash cow.
Shaun
11:08 am on Wednesday, October 26, 2011
Darin - You are 100% right. When Joe signed the legally binding franchisee agreement he knew exactly what he was getting into. It is a very simple concept if a franchisee is not living up to their agreement with the parent company the parent company has the right to take legal action or in some cases can simply pull the agreement and suspend all rights. Clearly the people who are defending Joe are only looking at this from a personal viewpoint and not one of a business/contract. Based on what the article says (which is only one side of the story) Joe is 100% in the wrong.
Dave A
11:59 am on Wednesday, October 26, 2011
All: Let's not jump to conclusions here. As a previous comment stated, we've only heard one side of the story. I've known Joe for over 30 years, have done business with him, and would never question his honesty, integrity, or intent.
pat k
1:53 pm on Wednesday, October 26, 2011
Joe SR. died at least 10 years ago, just when did Joe P. get the OK to mass produce these pizza's ? I see him at mass every week-end and I know he is a man of integrity but right is right and wrong is wrong, just sayin !!!
The Aurelio 's have also given to the community all their lives, come on people they have the right to protect what they have worked for for years.
Sue N.
3:51 pm on Wednesday, October 26, 2011
I believe there are 2 sides to every story too.
It does seem strange that he would continue doing it after being called out on it 8 years ago.
But I also find it very suspicious that the parent company is based in Homewood, and is just filing the compliant after they were sold to a Homewood-Flossmore school. Wondering if a verbal agreement was made after the incident 8 years ago to allow for fundraising, but the parent company is denying it because they're bent out of shape because they weren't the ones to provide for their neighboring schools. Guess we'll all find out soon enough what's what.
frank glio
10:45 pm on Sunday, October 30, 2011
this is totally ridiculous for people to make comments about this story and those involved....let those involved deal with it .....worry about your own lives...
JT
5:12 am on Friday, November 18, 2011
it seems to me that Joey found a market that was over looked and established a profitable business where there was none before. It is about the money, it seems being creative will get you sued. Joey, pay them name Royalties into a escrow, and settle this embarrassment. Joe A Sr. understood business, it is about survival!
frank glio
10:35 am on Saturday, November 26, 2011
this amazes me that aurelios wants to take a franchise agreement away from a franchisee that has a large majority of sales...also i think this has alot to do with advertising and free publicity....it was on channel 2 news and joey aurelio has bragged many times about the article being on the news...heck he'll even show it to you on his i phone...really this could have been settleled over coffee joe aurelio want s something else from joe pascale