What SMB owners can learn from the Buc-ee’s trademark lawsuits

Buc-ee’s has filed federal trademark lawsuits against more than a dozen small businesses in recent years, including cases involving cartoon animal mascots the chain says too closely resemble its own beaver logo. Its latest target is Beaver’s Mini Mart, a single-location convenience store in Beavercreek, Ohio, that has reportedly operated under that name since 2019.

The lawsuit, filed July 28, has drawn public backlash, with Ohio’s governor calling the suit “ridiculous.” Critics accuse the Texas-based chain of using its size and legal resources against a business unlikely to compete with it. The case raises a broader question for any company protecting its brand. When does trademark enforcement cross the line from necessary to excessive?

Joining us on the latest episode of Business Trends Today for a closer look at this issue is John Rizvi, Founder of The Patent Professor and The Law Firm Growth Professor. According to Rizvi, Buc-ee’s litigation history makes it hard to separate this case from its reputation.

Why the Ohio location works against Buc-ee’s

Beaver’s Mini Mart is in Beavercreek, Ohio, a detail Rizvi says undermines any argument that the store intentionally copied Buc-ee’s branding. Beaver imagery appears across multiple businesses in the area, tied to the town’s name rather than any attempt to confuse customers, Rizvi said.

"It's not like they purposely went out and said, well, we're gonna try to confuse the customers and use a beaver as our logo. They're in Beavercreek, Ohio, so that logo just comes naturally to them."

The store has also operated under its name for roughly two decades, well before Buc-ee’s expanded into Ohio. Rizvi said the timeline matters in the court of public opinion, even if it isn’t the deciding legal factor in a trademark dispute.

Rizvi argues that the combination of the local name tie-in and the store’s long operating history puts Beaver’s Mini Mart in a sympathetic position that’s difficult for Buc-ee’s to overcome.

What small businesses can do if a larger company uses their name

Rizvi recommends a small business consider negotiating a concurrent use agreement rather than fighting the lawsuit outright. Under that kind of deal, the smaller business agrees not to expand beyond its current footprint in exchange for the larger company dropping the case, Rizvi said.

He said that arrangement can work in a small business’s favor, since it usually isn’t planning to expand into new locations anyway. The negotiation, Rizvi asserts, should also include a request that the larger company cover the smaller business’s legal fees, since courts rarely award attorney costs outside of exceptional circumstances.

Rizvi said that detail matters because even a business that would win a trademark lawsuit outright still has to pay its own legal costs under the U.S. legal system. That reality can turn a winnable case into an expensive one, regardless of the outcome.

Why trademarking early matters 

According to Rizvi, the clearest lesson from the Buc-ee’s dispute is that trademark protection is far cheaper before a conflict starts than after one. He recommends business owners file for a federal trademark as soon as they settle on a name, rather than waiting until the business is established. 

"It's not a lot of money to secure a trademark, believe it or not. For under $2,000, you can get your brand protected."

Securing a federal trademark typically costs under $2,000, Rizvi said, compared with the $20,000 to $100,000 a business could face defending itself in a dispute like the one Buc-ee’s brought against Beaver’s Mini Mart. He said business owners often delay because they’re focused on more immediate costs like payroll and rent, but the upfront investment is minor compared with the risk of skipping it.

A registered trademark also becomes a business asset that affects its overall value, Rizvi said. It gives investors confidence that a company’s branding is protected, and it factors into due diligence when a business owner eventually sells.

The Buc-ee’s and Beaver’s Mini Mart dispute is still playing out, but Rizvi said the takeaway for small business owners is the same regardless of the outcome. Protecting a name and logo early costs far less than defending it later.