Even if you’re not a fast food person, chances are you’ve heard of the long-running brand clash between McDonald’s and Hungry Jack’s (aka Burger King in other markets). It’s a classic example of how “just a name” can turn into a serious legal and commercial battle when trade marks, brand reputation, franchising arrangements, and customer confusion collide.
This 2026 update is a timely reminder that brand disputes aren’t only for global giants. The same legal issues pop up for New Zealand startups and small businesses every day - especially if you’re building a recognisable name online, scaling quickly, or expanding overseas.
Let’s break down what happened (in plain English), why it mattered legally, and what you can do to protect your business from day one.
What Actually Happened Between McDonald’s, Burger King, And Hungry Jack’s?
At a high level, the “beef” is really about branding rights and who gets to use what name in a particular country.
In many parts of the world, Burger King trades under its usual name. But in Australia, it became widely known as Hungry Jack’s.
Why? Because there were already rights in Australia connected to the “Burger King” name (and associated branding), which made it difficult (or commercially impractical) for Burger King to operate there under that name at the time. The result was a workaround: operating under a different brand name while still selling essentially the same product category to the same market.
McDonald’s, of course, is one of the world’s most recognised brands. “Big Mac”, “McChicken”, “McFlurry”, and even the “Mc” naming convention have been heavily protected and enforced over time. That’s where things get interesting: when a brand becomes iconic, its owners often take a more aggressive approach to protecting it - including when someone uses a similar name, a similar look-and-feel, or marketing that could imply an association.
For business owners, the key point isn’t which company “won” a particular dispute in a particular jurisdiction. It’s this:
- Brand rights are territorial (what you can use in one country might be blocked in another).
- Trade marks aren’t just logos - they can include words, slogans, colours, shapes, and sometimes even distinctive product “get-up”.
- Customer confusion is the real legal risk - if people think your business is connected to someone else, you can have a problem fast.
Why This Kind Of Brand Dispute Matters For NZ Business Owners
It’s easy to assume that trade mark disputes are a “big business” issue. But in practice, small businesses can be more exposed because:
- you might invest heavily in a name before checking whether it’s available
- you might rely on social media handles and domains that don’t match your legal rights
- you might expand into Australia (or sell online globally) without realising rights are country-by-country
- you may not have strong contracts in place if you collaborate, licence, franchise, or white-label
In New Zealand, you can get tripped up even if you act in good faith. A name that “seems original” might still be too close to an existing brand - especially if you’re in a similar industry and targeting similar customers.
If you’ve ever wondered can two businesses have the same name, the frustrating answer is “sometimes” - but not in a way you can safely guess. The risk depends on trade mark registrations, the industry categories, the geographic scope, and whether customers are likely to be misled.
This is why getting your legal foundations right early isn’t just paperwork - it’s business protection. If you later have to rebrand, you can lose momentum, goodwill, SEO rankings, signage costs, packaging, and customer trust.
Trade Marks: The Real “Secret Sauce” Behind The Fight
Most brand battles like McDonald’s vs Hungry Jack’s come back to trade marks.
A trade mark is a legal right that helps protect a brand identifier - commonly a business name, logo, slogan, or product name - so that others can’t use something deceptively similar in a way that causes confusion.
Trade Marks Are Not The Same As A Company Name
One of the most common misunderstandings we see is assuming that registering a company name (or buying a domain) equals brand protection. It doesn’t.
- Company registration is about setting up an entity (useful, but different).
- Domain names are a web address (useful, but not automatically a trade mark right).
- Trade marks protect brand use in commerce, and can give you enforcement power.
If you’re still choosing your business structure, it can be helpful to treat brand ownership as part of the setup process - for example, deciding whether the trade mark is owned by you personally, or by a company you’ve formed via Company Set Up.
NZ Trade Mark Law Basics (Without The Jargon)
In New Zealand, trade marks are governed under the Trade Marks Act 2002. In practical terms, that means if you register a trade mark and use it properly, you’re in a much stronger position to:
- stop competitors from using a similar name or logo
- object to confusing trade mark applications
- protect your brand as it gains recognition
- increase business value (especially if you sell or franchise later)
But trade marks are strategic. You generally need to consider:
- what you’re registering (word mark, logo, tagline, etc.)
- what “classes” apply (the goods/services categories you trade in)
- where you need protection (NZ only, or Australia too, or beyond)
“Mc” Names, Similar Branding, And Customer Confusion
McDonald’s has historically enforced brand assets that consumers connect strongly with it - including naming patterns. For small business owners, the lesson isn’t “don’t use common words”. It’s that distinctive naming elements can become closely linked to a brand, and using something similar in a related market can trigger:
- trade mark infringement allegations
- claims about misleading conduct
- demands to rebrand (sometimes very quickly)
If you’re building a brand and want to reduce the risk of conflict, it’s smart to start with a clearance strategy - often by ordering a Trade Mark Search Report before you commit to packaging, signage, and marketing spend.
Passing Off And The Fair Trading Act: When You Can’t “Look Like” Someone Else
Trade marks aren’t the only legal tool in a brand dispute. In New Zealand, two other big risk areas are:
- passing off (a common law claim)
- misleading or deceptive conduct under the Fair Trading Act 1986
These claims often come up when someone hasn’t registered a trade mark (or even when they have), but they can show:
- their brand has a reputation in the market
- your branding creates a misrepresentation (even unintentionally)
- they suffer (or are likely to suffer) damage as a result
What “Misleading Or Deceptive” Looks Like In Real Life
Misleading conduct isn’t limited to outright lies. It can include the overall impression your brand gives. For example:
- a similar business name in the same industry
- logo design that feels “close enough” to create association
- packaging colour schemes and layout that mimic a market leader
- marketing copy that implies affiliation (“official”, “authorised”, “the original”)
In other words: even if your business is legitimate, the way you present it can still create legal exposure if customers are likely to think you’re connected to someone else.
This is also why it’s worth thinking carefully about what makes your brand truly distinctive - not just legally, but commercially.
Online Branding Makes Confusion Easier (And Faster)
Brand confusion can spread quickly online. A similar Instagram handle, a “close enough” website name, or a Google ad triggered by a competitor’s brand can escalate issues quickly - particularly when customers can’t easily tell who they’re buying from.
If your business runs online, strong website terms and brand ownership are part of the puzzle. But the core protective step is still trade mark strategy - and being consistent with how you use it.
If you do register a mark, you might also wonder about symbols. Whether you should use ™ or ® depends on what’s registered and where you’re using it, and the nuances matter - especially for growing brands. The question of the registered trade mark symbol is more than just aesthetics; it can affect how you communicate rights to the market.
Franchising And Licensing: The Hidden Legal Layer In Big Brand Battles
There’s another key reason these disputes are so complex: global brands often grow through franchising and licensing.
That can mean multiple parties are involved, such as:
- the brand owner (franchisor)
- a master franchisee (rights for a territory)
- individual franchisees (store operators)
- suppliers and marketing partners
When you have multiple parties, rights and obligations are shaped heavily by contract - and contract disputes can sit alongside trade mark disputes.
Why Franchise Contracts Matter So Much
Franchise arrangements typically cover things like:
- who owns the IP and branding
- what branding must be used (and how)
- quality control standards
- territory and exclusivity
- marketing contributions and approvals
- what happens on termination
If you’re thinking of scaling through franchising - or buying into a franchise system - it’s crucial to understand what you’re signing. A well-drafted Franchise Agreement is often where the real commercial power sits, because it sets the rules for brand use long before anyone ends up in a courtroom.
Even Small Businesses Can Accidentally “Franchise”
You don’t need to be a multinational chain to create franchise-like risk. If you’re giving others the right to operate under your brand (with system controls and fees), you can step into franchising territory quicker than you think.
If that’s on your roadmap, it’s worth getting advice early so you don’t build a growth model that becomes difficult (or expensive) to unwind later.
How To Protect Your Brand In NZ (Without Overcomplicating It)
If the McDonald’s vs Hungry Jack’s saga proves anything, it’s that your brand is an asset - and assets are worth protecting properly.
Here’s a practical checklist you can apply to your own business.
1. Choose A Name That You Can Actually Own
Before you fall in love with a name, do some early checks:
- basic Google search
- Companies Register search
- domain and social handle checks
- trade mark searching (this is the key one)
It’s also smart to think beyond exact matches. A name can still be a problem if it’s confusingly similar in the same market.
If you’re still at the naming stage, keeping your brand unique is one of the easiest ways to reduce legal risk and improve marketing cut-through.
2. Register Your Trade Mark (If The Brand Matters To Your Growth)
Not every business needs a registered trade mark on day one. But if you’re spending meaningful money on brand building (packaging, signage, social ads, influencer campaigns, product labels), trade mark registration is often a sensible investment.
It can also matter if you plan to:
- raise capital
- sell the business
- franchise or license your brand
- expand into Australia
When you’re ready to formalise ownership, you can look at Register Your Trade Mark so your brand is protected from day one (and not just “claimed” informally).
3. Document Who Owns The Brand (Especially If You Have Co-Founders)
If you’re building a business with someone else, brand ownership needs to be clear. This is especially important when:
- one person designed the logo
- one person registered the domain
- you’re both contributing money and effort
- you might bring in investors later
It can feel awkward to discuss ownership early, but it’s far less awkward than trying to untangle it later during a dispute or breakup.
4. Be Careful With “Inspired By” Branding
It’s normal to take inspiration from successful brands. But there’s a line between “inspired” and “confusing”. If you’re in a similar industry (food, beverage, retail, online services), you should be especially careful about:
- similar naming patterns
- copycat packaging layouts
- brand colours and design elements used in the same way
- ad keywords that imply association
A useful rule of thumb is: would a reasonable customer pause and wonder if you’re related? If yes, it’s worth reconsidering before you invest more time and money.
5. Use Contracts To Protect Your Brand As You Collaborate And Grow
Many brand issues don’t start with a competitor. They start with a contractor, designer, marketer, or partner relationship that wasn’t clearly documented.
If you engage third parties, consider putting the right documents in place so that:
- you own (or can use) the IP created for you
- confidential information is protected
- the scope of work and deliverables are clear
- you can end the relationship without losing control of your brand
Contracts won’t replace trade mark protection, but they do reduce the everyday risk that comes with growing a brand.
Key Takeaways
- McDonald’s vs Hungry Jack’s is a reminder that brand rights are territorial, and what works in one country might not be available in another.
- Trade marks are one of the strongest tools for protecting your business name, logo, and product branding - and they’re different from company names and domain names.
- Even without a registered trade mark, you can face (or bring) claims under passing off and the Fair Trading Act 1986 if branding causes customer confusion.
- Franchising and licensing arrangements add a contract layer to brand disputes, so it’s crucial to document brand ownership and usage rights clearly.
- To protect your business from day one, pick a distinctive name, run proper clearance checks, and register trade marks where your brand is central to growth.
If you’d like help protecting your brand, registering a trade mark, or setting up contracts that support growth, you can reach us at 0800 002 184 or team@sprintlaw.co.nz for a free, no-obligations chat.
