Lawyers’ letters have already been exchanged between the Wellington-based company and solicitors acting for London-based restaurant chains the Gourmet Burger Kitchen, or GBK, and Clapham House.
GBK and Clapham House’s lawyers say the claims are without substance.
Burger Wisconsin was started by Michael Davenport in the Wellington suburb of Wadestown in 1989. The cafe-style format, offering gourmet hamburgers, has expanded to 27 franchised operations in New Zealand.
It has now split into two companies - Burger Wisconsin, which runs the New Zealand franchises, and Wisconsin International, which controls the intellectual property rights outside New Zealand and Australia.
The Burger Wisconsin concept was so successful that it attracted the attention of two budding Kiwi entrepreneurs in Britain.
Wisconsin International managing director Tim Stewart said that in 2000 the company had reached an agreement that London-based Greg Driscoll and Brandon Allen’s The Great Trading Company could use its intellectual property, but not the Burger Wisconsin name. Mr Stewart said he believed the rights were not exclusive and covered them to set up a similar business only in Britain and Ireland.
During the next four years, the two ex-pats and friend Adam Wills built up the Gourmet Burger Kitchen, or GBK, chain of restaurants in London. It was so successful that in December 2004 they sold the business to Clapham House for $25 million.
Clapham House, which was set up by British businessman David Page, also owns The Real Greek and the Bombay Bicycle Club restaurant chains.
“Before, we would have said ‘well done’,” Mr Stewart said.
“Obviously, they put the energy into making it happen and as far as we were concerned we were honouring our agreement and they were honouring their agreement and we just thought, very well done.”
That attitude changed when the business was sold and Clapham House was reportedly looking to expand the business outside Britain.
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