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Hobby shop name stealing?


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#1 Howard Cohen

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Posted 17 November 2012 - 05:36 AM

What do you think of a hobby shop that opens up in the same place as a shop that just moved, then proceeds to use the name of the other shop? Does this sound right? This is actually happening in Hamilton, Ontario, Canada.

The original store was opened in the 1960s. The owner retired and sold it to his daughter and her husband. They moved the store to a new location on Kenilworth where they ran a very successful business for a few decades until a couple of years ago. Then they sold the property and moved the business into an industrial area so they could enjoy some semi-retirement while still working shows and flea markets, etc. Now a new hobby business has opened in the same old location using the same name and have even claimed to be the children of the other owners...not true, they are not related!

Does this have a funny stink to it? Does this seem slimy? Would you shop at such a store knowing they are probably dishonest? We are having this discussion on al Canadian model group and so far we cannot find anyone who has been told the truth.

I would like to know what you think please? Thanks...

#2 Gluhead

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Posted 17 November 2012 - 05:46 AM

It sounds like there are a few chunks of the story missing. I guess for me, the bottom line is what do the owners of the old shop have to say about it? If they aren't irked by it, then I don't see why I would be. If the new shop owners are making false claims then yes, I'd approach with caution...but depending on the extent of the claims I would probably give them a chance. New hobby shops definitely do not grow on trees these days.

Bear in mind this is coming from the perspective of someone who for years had a dozen hobby shops within "honey, I'm going to make a quick trip to the hobby shop" distance...but now suffers along with only two which are each a town over and more often than not do not stock what I happen to need that day...so I may be a little more open minded. :D

#3 my80malibu

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Posted 17 November 2012 - 05:58 AM

We here in Phoenix had a Hobby Lobby hobby store for a number of years, before a National chain with a very similar Name moved in to town. I do believe in fact that the National chain did purchase the right to use that Hobby stores name. Here in Phoenix from the owners of the original Hobby Lobby. Now we have them all over the Valley with a 40% of coupon, which was something we never seen from the original owners.

#4 Dr. Cranky

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Posted 17 November 2012 - 07:20 AM

I would much rather have a hobby store near by regardless of how owns it or what the new owners have named it. I think they probably kept the same name of the sake of recognition, etc . . . I don't know, my opinion is that it is better to have one than not. Consider yourself lucky, many people don't have a store anywhere near them.

#5 Art Anderson

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Posted 17 November 2012 - 07:54 AM

That sort of thing has happened over time in the US, of course--and not limited to hobby shops. While of course, I know next to nothing about Canadian law, but in the US, it is possible to register a trade name at both the state and federal level. If a hobby shop owner doesn't do that, he or she does stand to lose the exclusive use of that trade name.

But yeah, on the face of it, it almost sounds as if the owners of this new hobby shop are perhaps pirating a known store name.

Art

#6 Harry P.

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Posted 17 November 2012 - 07:59 AM

Maybe the new owners made a deal with the previous owners allowing them to use the same name. Maybe a payout was involved, or maybe the previous owners get a cut of the profit, or whatever. Who knows? There are a lot of ways this deal may have been made, completely honestly and legitimately and beneficial to both the new and old owners. Can't judge intent based on circumstantial evidence.

And like Cranky said... who cares what the shop is called or who owns it? It could be called "Betty's Cookie Shop"... as long as they have what you want, what difference does the shop's name make?

#7 espo

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Posted 17 November 2012 - 08:07 AM

Sometimes when a business is sold the name is sold with it. This maybe for a short time, say five years. It could be that since the buyers were related it might stay with the old name from then on.

#8 Johnag4004

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Posted 17 November 2012 - 08:10 AM

I agree with Doc and Harry, who cares, I don't have a shop anywhere near me so the only way I can get anything model related is via the internet...

#9 sjordan2

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Posted 17 November 2012 - 08:20 AM

Regardless of whether it's legit or not, at least the new owner didn't have to pay to change the signs. Sounds like a deal to me.

Also sounds like something typical of all types of mom-and-pop businesses, like restaurants - the sort of deal where you see a temporary sign on the door that says "Under New Ownership."

Edited by sjordan2, 17 November 2012 - 08:30 AM.


#10 imarriedawitch

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Posted 17 November 2012 - 08:28 AM

As has been mentioned, this is often done in business. Using the name is likely part of the transaction.

#11 martinfan5

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Posted 17 November 2012 - 09:53 AM

We here in Phoenix had a Hobby Lobby hobby store for a number of years, before a National chain with a very similar Name moved in to town. I do believe in fact that the National chain did purchase the right to use that Hobby stores name. Here in Phoenix from the owners of the original Hobby Lobby. Now we have them all over the Valley with a 40% of coupon, which was something we never seen from the original owners.


You are correct, Hobby Lobby bought the name and then it became Gordons hobby lobby for a short time, the local Hobby Lobby was my favorite Hobby store in the valley as a kid, I have good memory's of my dad taking me there on the weekends

Edited by martinfan5, 17 November 2012 - 09:53 AM.


#12 Darren B

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Posted 17 November 2012 - 09:56 AM

Howard did not mention if there was a deal, but i can see his point, he is worried about the honesty of the new owners is more what he is worried about, however they are not a used car dealer or selling anything with a long term contract, its kits, supplies, and a few other do dads, if the prices are fair and you know what you are buying it doesn't matter if they are telling the truth or not. It would not concern me one bit, buy what you want and leave. And also like everyone else is saying they probably did get a deal with the original owners so that they could not be sued down the road for any reason.

The most important thing is you have a hobby shop. Im worried that someday we may not have one here in a city of 1 million people(Albuqueruque, NM), before the economy hit the toilet we had almost ten shops now we are down to just 1. We have 3 hobby lobbys and 1 michaels but the kits never change there and the supplies are nill, i always want a hobby shop as mine will order anything i want an not charge me shipping, plus they give me a 15% discount to our local model club, so if this new one can thrive, forget the story told and support the place so you will have a place to go and enjoy your hobby, like mine here in my city I spend every dollar I can in the hopes it helps their bottom line, I even buy all the model mags there instead of subscribing, I know they don't make much on that, but its something and I buy anything I need there, even if its cheaper on the net, with this economy its hard for any shop owner to make it these days, and now more than ever its time to support any and all local hobby shops!!!

Edited by Darren B, 17 November 2012 - 10:13 AM.


#13 Scuderia

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Posted 17 November 2012 - 10:08 AM

Maybe the new owners made a deal with the previous owners allowing them to use the same name. Maybe a payout was involved, or maybe the previous owners get a cut of the profit, or whatever. Who knows? There are a lot of ways this deal may have been made, completely honestly and legitimately and beneficial to both the new and old owners. Can't judge intent based on circumstantial evidence.


I'm with harry, with businesses and biz law there's often many layers. I can't fault them on first-glance though.

#14 Howard Cohen

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Posted 17 November 2012 - 03:23 PM

Thanks for all your input. I wanted to hear other opinions on this subject.

#15 Scale-Master

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Posted 17 November 2012 - 03:57 PM

Thanks for all your input. I wanted to hear other opinions on this subject.


Yeah, nothing like using misleading language in an attempt to build up a "reputation" based on falsehoods. Repeat them all you want, someone will always know the thruth... Shameful.

#16 michaelbaskett

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Posted 23 November 2012 - 01:55 AM

What do you think of a hobby shop that opens up in the same place as a shop that just moved, then proceeds to use the name of the other shop? Does this sound right? This is actually happening in Hamilton, Ontario, Canada.

The original store was opened in the 1960s. The owner retired and sold it to his daughter and her husband. They moved the store to a new location on Kenilworth where they ran a very successful business for a few decades until a couple of years ago. Then they sold the property and moved the business into an industrial area so they could enjoy some semi-retirement while still working shows and flea markets, etc. Now a new hobby business has opened in the same old location using the same name and have even claimed to be the children of the other owners...not true, they are not related!



Does this have a funny stink to it? Does this seem slimy? Would you shop at such a store knowing they are probably dishonest? We are having this discussion on al Canadian model group and so far we cannot find anyone who has been told the truth.

I would like to know what you think please? Thanks...


Howard...
What is this other forum you speak of..?...
Thanks...

#17 Tom Geiger

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Posted 23 November 2012 - 08:31 AM

Regardless of whether it's legit or not, at least the new owner didn't have to pay to change the signs. Sounds like a deal to me.



In the town I grew up in NJ, there was a SHOE TOWN store that went out of business. Another shoe store took the same space and just shuffled the letters around to name their store "SHOE NOW". It's been gone for 20 years and it's still a running joke on the Facebook group dedicated to the town.