Does 360 Painting indemnify franchisees outside of Minnesota for trademark infringement claims?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
The Minnesota Department of Commerce requires that a franchisor indemnify Minnesota Franchisees against liability to third parties resulting from claims by third parties that the franchisee's use of the franchisor's trademark infringes upon the trademark rights of the third party. The franchisor does not indemnify against the consequences of a franchisee's use of a franchisor's trademark except in accordance with the requirements of the franchise agreement, and as the condition to an indemnification, the franchisee must provide notice to the franchisor of any such claim immediately and tender the defense of the claim to the franchisor. If the franchisor accepts tender of defense, the franchisor has the right to manage the defense of the claim, including the right to compromise, settle or otherwise resolve the claim, or to determine whether to appeal a final determination of the claim.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 42–46)
What This Means (2025 FDD)
According to 360 Painting's 2025 Franchise Disclosure Document, the franchisor is required to indemnify Minnesota franchisees against liability to third parties resulting from claims that the franchisee's use of the franchisor's trademark infringes upon the trademark rights of the third party. The franchisor does not indemnify against the consequences of a franchisee's use of a franchisor's trademark except in accordance with the requirements of the franchise agreement.
As a condition to indemnification, the franchisee must provide notice to the franchisor of any such claim immediately and tender the defense of the claim to the franchisor. If the franchisor accepts tender of defense, the franchisor has the right to manage the defense of the claim, including the right to compromise, settle, or otherwise resolve the claim, or to determine whether to appeal a final determination of the claim.
For prospective franchisees outside of Minnesota, the FDD does not explicitly state whether 360 Painting provides indemnification for trademark infringement claims. The document only details the specific requirement for Minnesota franchisees due to Minnesota state law. A potential franchisee should clarify with 360 Painting if similar indemnification is offered in their specific state and under what conditions.