Letip World Franchise LLC v. Long Island Soc. Media Grp. LLC_2025 U.S. Dist. LEXIS 95666 (July 2025)
LeTip World Franchise LLC (“LeTip Franchise”), a business leads networking organization with over 250 franchises, filed a lawsuit against Long Island Social Media Group LLC (“LISMG”), BxB Professionals LLC, Clifford Pfleger, Heather Pfleger, and Saranto Calamas. The dispute centered around allegations that LISMG, operated by Clifford Pfleger and Saranto Calamas, breached their franchise agreement with LeTip Franchise by modifying the franchise’s logo and improperly competing through BxB Professionals LLC.
LeTip Franchise, based in Arizona, entered into a franchise agreement with LISMG on April 10, 2020, granting them the right to operate a LeTip franchise in Suffolk County, New York, for five years. The agreement prohibited LISMG and its operators from running a competing business in the same area during the agreement’s term and for two years after its termination. The agreement also allowed the use of LeTip trademarks and logos but prohibited any modifications to them.
In 2021, Clifford Pfleger modified the LeTip logo by adding the word “Just” above it on his boat, claiming he had permission from LeTip International’s CFO, John Pokorny, via a text message. The boat was drydocked until April 2023, when Pfleger moved it to a private marina and posted a picture on social media. Upon seeing the modified logo, LeTip’s owner, Summer Middleton, and an officer, Paul Della Valle, requested its removal, both in person and through a letter from LeTip’s trademark counsel, threatening termination of the franchise agreement.
Pfleger claimed Middleton orally gave him 30 business days to remove the logo, which she disputed. Although Pfleger began removing the logo, he did not complete the task until after receiving a termination notice on June 12, 2023, which cited the failure to remove the logo by June 2 as the reason for termination. The notice stated that the altered logo could harm LeTip Franchise’s reputation, allowing termination without a cure period.
In December 2023 or January 2024, Pfleger announced a new role as Regional Director at BxB, a networking organization with the same address as LISMG and Calamas’s CPA license. Pfleger planned a launch party for BxB at the same venue used by LeTip’s Suffolk County chapters, prompting LeTip Franchise to seek a temporary restraining order to prevent the operation of BxB. The court granted the order, prohibiting the defendants from engaging in any competitive business activities.
On December 13, 2024, LISMG, Pfleger, and Calamas filed counterclaims against LeTip Franchise, LeTip International, Middleton, and Della Valle, alleging breach of the franchise agreement, wrongful termination, and defamation. They claimed the LeTip parties created a competing chapter and defamed them by labeling the modified logo as “sexually suggestive” and “vulgar.” The counterclaimants sought injunctive relief to prevent enforcement of the non-compete clause.
The court dismissed the breach of contract and defamation claims with leave to amend, and the claim for injunctive relief was dismissed without leave to amend. The court ordered that any amended counterclaims be filed by June 3, 2025.
