The Filta Group, Inc. v. LXU, Ltd., Kenneth Melick, Kitchen Kare Innovations, LLC and Shane Farrer

CourtDistrict Court, M.D. Florida
DecidedDecember 23, 2025
Docket6:25-cv-00914
StatusUnknown

This text of The Filta Group, Inc. v. LXU, Ltd., Kenneth Melick, Kitchen Kare Innovations, LLC and Shane Farrer (The Filta Group, Inc. v. LXU, Ltd., Kenneth Melick, Kitchen Kare Innovations, LLC and Shane Farrer) is published on Counsel Stack Legal Research, covering District Court, M.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
The Filta Group, Inc. v. LXU, Ltd., Kenneth Melick, Kitchen Kare Innovations, LLC and Shane Farrer, (M.D. Fla. 2025).

Opinion

UNITED STATES DISTRICT COURT MIDDLE DISTRICT OF FLORIDA ORLANDO DIVISION

THE FILTA GROUP, INC.,

Plaintiff,

v. Case No: 6:25-cv-914-PGB-NWH

LXU, LTD., KENNETH MELICK, KITCHEN KARE INNOVATIONS, LLC and SHANE FARRER,

Defendants. / ORDER This cause is before the Court on the Plaintiff’s Renewed Motion for Preliminary Injunction. (Doc. 29). The Defendants submitted a Response in Opposition (Doc. 57)1, and the Court presided over an evidentiary hearing regarding the Motion on December 18–19, 2025. Upon consideration, the Plaintiff’s Renewed Motion for Preliminary Injunction is granted. I. FINDINGS OF FACT A. The Franchise Agreement The Filta Group offers franchises, including FILTAFRY®, which involves microfiltration of used cooking oils using a Mobile Filtration Unit (“MFU”). (Doc. 29-1, ¶ 2). The MFU bears Plaintiff’s trademarks. (Id. ¶¶ 3–4). The Plaintiff’s

1 Rather than attaching the Declarations of Kenneth Melick and Shane Farrer to their response, the Defendants filed the Declarations as separate documents. (See Docs. 57, 58, 59). franchisees can also market FILTACLEAN®, which offers cleaning and sanitizing of commercial kitchen surfaces. (Id. ¶ 6). Filta franchisees operate the MFUs from vans that are specially equipped and bear the Filta Mark. (Id. ¶ 5). It is undisputed

that Plaintiff has extensively employed and advertised its Marks throughout the United States.2 (Id. ¶¶ 17–18). Defendant Ken Melick is the owner of Defendant LXU, Ltd. (“LXU”). (Id. ¶ 7). Mr. Melick executed a Franchise Agreement with Plaintiff on January 9, 2014. (Id. ¶ 7; Plf. Ex. 2). Whenever a franchisee offers another Filta service to a

customer, the franchisee signs a Franchise Agreement Addendum. (Doc. 29-1, ¶ 8). Defendants Melick and LXU (collectively, the “Franchisees”) operated a franchised Filta business in Ohio, Indiana, and Kentucky (collectively, the “Territories”) using the MFU system and Marks. (Id. ¶ 10). The Franchisees were required to operate the franchised business continuously during the term of the Franchise Agreement. (Id. ¶ 12). Defendant Melick also guaranteed LXU’s

performance to Filta and its adherence to the Franchise Agreement’s non-compete and non-solicitation provisions. (Plf. Ex. 2, p. 33, §§ 23.1–23.5). The franchisee is also prohibited from providing financing, other assistance, or facilities to any business that competes with Filta. (Plf. Ex. 2, § 23.1). Defendant Melick testified that, as a Filta franchisee, he knew which services were being provided to

2 A comprehensive list of Plaintiff’s Marks is set forth at Docket Entry 29-1 in paragraphs 17– 18. Defendants KKI and Farrer infringed Plaintiff’s Marks in other ways, including Mr. Farrer’s LinkedIn page identifying him as Director of Operations at The Filta Group, Inc. – USA. (Plf. Ex. 45). Defendant Farrer’s LinkedIn page was not changed until the second day of the hearing. customers, when the services were scheduled, and the amount paid by each customer. He obtained this information from Filta’s inside sales department. Filta took steps to protect its confidential and proprietary information. The

Franchise Agreement prohibits the Franchisees from transferring or selling the MFUs. (Doc. 29-1, ¶¶ 24–25; Plf. Ex. 2, § 8.1). Filta had the right to inspect a franchisee’s business, including its books and records, vans, and MFUs, and could direct a franchisee to provide a list of its customers. (Doc. 29-1, ¶¶ 27, 28). To protect its proprietary information, franchisees were required to obtain signed

confidentiality and/or non-compete agreements from their employees. (Id. ¶ 32; Plf. Ex. 2, §§ 13.3, 17.2, 23.6). If the Franchise Agreement expires or is terminated, the franchisee is required to sell its MFUs to Plaintiff and cooperate in transitioning customers back to the Plaintiff. (Plf. Ex. 2, §§ 22.1–22.10). B. The Formation of KKI Defendant Farrer testified at the evidentiary hearing. Defendant Farrer

formed Kitchen Kare Innovations (“KKI”) on October 1, 2024, with the assistance of Mr. Li, counsel for the Franchisees. Before founding KKI, Defendant Farrer was employed by LXU, where he began as a technician and eventually rose to the position of Chief Operating Officer. Defendants Farrer and Melick, as well as Mr. Li, maintain offices at the same physical address. Defendant Farrer attended

conventions while employed by LXU and gained knowledge of fryer management during his eight-year tenure. Defendant Farrer also learned which customers LXU serviced under the Filta franchise and the amounts charged for those services. Defendant Melick never asked Defendant Farrer to sign a confidentiality agreement. Although Defendant Farrer is not a signatory to the Franchise Agreement,

on March 25, 2025, he received a cease-and-desist letter from the Plaintiff’s counsel. (Plf. Ex. 22). Counsel advised Defendant Farrer that under § 8.6.9 of the Franchise Agreement, LXU is prohibited from competing with Filta and from using confidential information obtained during the term of the Franchise Agreement. Defendant Farrer was also instructed that the Franchise Agreement prevents a

franchisee from circumventing the non-competition clause by acting indirectly through any other person or entity (Id.). Defendant Farrer testified that he showed this letter to Mr. Li, who later assisted him in drafting correspondence soliciting business from LXU customers. C. The Conspiracy On September 18, 2024, Defendant Melick applied to become a distributor

for Ceiling Pro International, a company that sells cleaning chemicals. (Plf. Ex. 62). In the application, Defendant Melick identified his company as “LXU ltd dba Filta Environmental Kitchen Solutions.” (Id.). Two weeks later, Ceiling Pro invited Defendant Melick to a training event. (Plf. Ex. 63). Defendant Farrer accompanied him on this trip. On September 27, 2024, the Plaintiff learned about the upcoming

conference and reminded Defendant Melick that he was required to sign an addendum to the Franchise Agreement before he could provide these services. (Plf. Ex. 18). Defendant Melick never signed the addendum. Instead, on October 1, 2024, Defendant Farrer, with the help of Mr. Li, formed KKI, ostensibly to provide ventilation hood cleaning services. Defendant Melick loaned Defendant Farrer $17,500 to secure a Ceiling Pro distributorship, knowing that the Plaintiff was

forging a relationship with Ceiling Pro to grow Plaintiff’s kitchen cleaning services. (Plf. Ex. 18).3 Leading up to May 16, 2025, LXU had received several default notices from the Plaintiff. (Plf. Exs. 15, 24–27, 29). Defendant Melick testified on the second day of the evidentiary hearing and admitted that on April 29, 2024, the Franchisor

requested a complete customer list (Plf. Ex. 15), and he did not comply as required by the Franchise Agreement. Defendant Melick also conceded that he violated the Franchise Agreement by failing to have employees sign confidentiality agreements, performing work outside of his designated territory, and denying Filta access to his books, records, and facilities. (Plf. Exs. 25, 26, 28, 29). On May 16, 2025, without providing Filta prior notice, the Franchisees

unilaterally terminated the Franchise Agreement and sent a letter, using the Filta Mark, to every customer. (Plf. Ex. 33). The letter was sent to customers on Friday, May 16, 2025, and informed them that LXU would no longer provide fryer management services. (Id.). Defendant Melick told these franchise customers that he had “already reached out to alternate service vendors to secure their agreement

3 Defendants KKI and Farrer contend that Defendant Melick’s loan does not violate the Franchise Agreement’s prohibition on financing a competitor because Filta was not yet offering kitchen cleaning services.

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The Filta Group, Inc. v. LXU, Ltd., Kenneth Melick, Kitchen Kare Innovations, LLC and Shane Farrer, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-filta-group-inc-v-lxu-ltd-kenneth-melick-kitchen-kare-flmd-2025.