A chain of fast food joints has popped up in Moscow, but they go by a name that will be familiar to many Americans: Burger King. Entrepreneur Alexei Makoveyev registered the burgerking.su and burger-king.su domains in his own name and now the original American chain is calling foul. They're right to do so because Burger King is such an iconic American brand.
The name was trademarked by the mom and pop store before the chain did it. A judge ruled in favor of the chain restaurant except that it couldn't interfere or open a store in Illinois. As long as the name stays with the mom and pop store in Illinois, I don't think they should sue. Burger King is famous there, and they didn't expand into other states.
I believe the original Burger King should not sue the larger chain for trademark infringement. While Gene and Betty Hoots may have created the company, named it, and added burgers to the menu, they did sell the business to Cory Sanders and they can't just claim infringement because the business became popular and was made into a chain.
When the family took out the trademark, they were only taking out a localized trademark. They would not win, but they could get some publicity by suing. Chances are with a big company they would loose what little trademark they have, so not only do they not have a case, but it would hurt them.