factual

In Minnesota, who is responsible for defending against infringement claims involving the Alloy mark?

Alloy Franchise · 2025 FDD

Answer from 2025 FDD Document

This Addendum pertains to franchises sold in the State of Minnesota and is for the purpose of complying with Minnesota statutes and regulations. Notwithstanding anything which may be contained in the body of the Franchise Agreement to the contrary, the Agreement is amended as follows:

    1. We will undertake the defense of any claim of infringement by third parties involving the ALLOY Trademark, and you will cooperate with the defense in any reasonable manner prescribed by us with any direct cost of such cooperation to be borne by us.

Source: Item 23 — RECEIPTS (FDD pages 69–245)

What This Means (2025 FDD)

According to the 2025 Alloy FDD, in Minnesota, Alloy will undertake the defense of any claim of infringement by third parties involving the Alloy Trademark. The franchisee must cooperate with Alloy in the defense in any reasonable manner prescribed by Alloy, with any direct cost of such cooperation to be borne by Alloy. This addendum modifies the franchise agreement for franchisees in Minnesota 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, Alloy will take the lead in defending against that claim. The franchisee is required to assist Alloy in the defense, but Alloy will cover the direct costs associated with that assistance. This is a benefit to the franchisee, as they will not have to bear the primary responsibility or cost of defending against trademark infringement claims.

It is important to note that this protection applies specifically to claims of infringement by third parties. If Alloy determines that the franchisee has not used the trademarks in accordance with the franchise agreement, the cost of the defense, including any judgment or settlement, will be the franchisee's responsibility. Therefore, it is crucial for franchisees to adhere to Alloy's trademark usage guidelines to ensure they are protected under this provision.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.