One of the GLBT community’s favorite new eateries is undergoing a nominal change, though not a change in direction. Margarita’s, formerly known as Margarita Mary’s, has changed its name, for the time being, in the wake of a threat of legal action by the Hamburger Mary’s franchise, Hambuger Mary’s International, Inc., that owns the Hamburger Mary’s name.

“There’s somebody that owns the name Hamburger Mary’s and he thought it was too close of a relationship to have Hamburger Mary’s and Margarita Mary’s, seeing that I own Hamburger Mary’s,” said Chris Shaw, co-owner of Hamburger Mary’s and Margarita’s, in a recent interview. “It was just too much conflict of interest.”

Margarita Mary’s opened to the public in April and quickly became a local hot spot for drinks and dining, featuring a Mexican flare rather than the creative variations on traditional burgers offered at Hamburger Mary’s.

“We’ve always felt that we were a positive influence for the Hamburger Mary’s name,” Shaw said. “Margarita Mary’s was supposed to be a positive influence for them, but they didn’t see it the same way.”

Shaw explained that Hamburger Mary’s operates independently of the Hamburger Mary’s International franchise, and that the San Diego Hamburger Mary’s was a part of the original family of Hamburger Mary’s restaurants, before the businesses were developed into a franchise. Because of that they do not abide by the same legal requirements as newer franchises, including those more recently opened in Las Vegas and Palm Springs.

“We licensed the name here in San Diego and we own the license as long as we own the lease of the building,” Shaw said. “When [the franchise owner] acquired ownership of the name Hamburger Mary’s he acquired us along with them. We pay no royalties as a franchise and we don’t have any of the guidelines that the franchises have. We are totally independent.”

Shaw said that business is booming at both locations.

“It’s the same owners as Hamburger Mary’s, it’s run by the same management team, the same everything,” Shaw said. “We’ve just got to think of a creative name and we want to get the public involved and help us create that name.”

To create a new name, Shaw and the owners of Margarita’s will turn to the public for help as they launch a naming contest scheduled to begin the first week of August. Details of the contest are being worked out, but Shaw told the Gay & Lesbian Times that the creative person who comes up with the new name for the restaurant will be rewarded.