Bought a domain, have problem

Let’s say I bought washingtondonuts.com. Did minimal research only in DC market. There was no Washington Donuts shop! Later discovered that there is a Washington Donuts in a little town called Washington in another state. So now what to do? Can I sell that to anybody? Little Washington Donuts might have a claim. I have nothing to do with either Washington or Donuts. Can I try to sell it in the DC market? Should I contact little Washington and offer it to them for the cost of a transfer plus whatever they would like to add? Should I keep quite and eat the hand reg fee?