For Alloy franchises in Minnesota, who undertakes the defense of infringement claims involving the Alloy Trademark?

According to Alloy's 2025 Franchise Disclosure Document, specifically the addendum for Minnesota franchisees, Alloy will undertake the defense of any claim of infringement by third parties involving the ALLOY Trademark. However, the franchisee is required to cooperate with Alloy in the defense in any reasonable manner prescribed by Alloy. Any direct cost of such cooperation will be borne by Alloy. This clause is added to the franchise agreement to comply with Minnesota statutes and regulations.

This means that if a third party claims that an Alloy franchisee in Minnesota is infringing on their trademark by using the ALLOY Trademark, Alloy will take the lead in defending against that claim. This is a significant benefit for the franchisee, as trademark litigation can be expensive and complex. However, the franchisee must still cooperate with Alloy's defense efforts, and Alloy will cover the direct costs associated with that cooperation.

It is important to note that this protection applies specifically to claims involving the ALLOY Trademark. If a franchisee uses the trademarks in a manner inconsistent with the franchise agreement, they may be responsible for the costs of their own defense. Additionally, this addendum only applies to franchises sold in the State of Minnesota, as it is designed to comply with Minnesota-specific regulations.