What is the deadline for an Auntie Annes franchisee in Minnesota to provide notice to Auntie Annes of a trademark infringement claim to be eligible for indemnification?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
- 9.8 The Minnesota Department of Commerce requires that we indemnify you against liability to third parties resulting from claims by third parties that your use of our trademark infringes trademark rights of the third party.
We do not indemnify against the consequences of your use of our trademark except in accordance with the requirements of the Agreement, and, as a condition to indemnification, you must provide notice to us of any claim within 10 days and tender the defense of the claim to us.
If we accept the tender of defense, we have the right to manage the defense of the claim including the right to compromise, settle or otherwise resolve the claim, and to determine whether to appeal a final determination of the claim.
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to the 2024 Auntie Annes Franchise Disclosure Document, a Minnesota franchisee must provide notice to Auntie Annes of any trademark infringement claim within 10 days to be eligible for indemnification. Specifically, Section 9.8 of the Franchise Agreement is amended to include that the franchisee must provide notice of any claim within 10 days and tender the defense of the claim to Auntie Annes.
This means that if a third party claims that an Auntie Annes franchisee in Minnesota is infringing on their trademark rights, the franchisee must notify Auntie Annes within 10 days of becoming aware of the claim. This prompt notification is a condition for Auntie Annes to indemnify the franchisee against any resulting liabilities.
If the franchisee fails to provide notice within this 10-day period, Auntie Annes may not be obligated to cover the franchisee's legal costs or any damages awarded to the third party. This requirement underscores the importance of franchisees acting quickly and communicating effectively with Auntie Annes regarding any potential legal issues related to trademark use.