factual

Under what conditions must an Auntie Annes franchisee in Minnesota provide notice to Auntie Annes to be indemnified against trademark infringement claims?

Auntie_Annes Franchise · 2024 FDD

Answer from 2024 FDD Document

n Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, as long as the nature of the litigation is not the type of dispute, controversy, claim, action or proceeding which would be subject to arbitration under the Franchise Agreement.

    1. Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise.

MINNESOTA ADDENDUM TO DISCLOSURE DOCUMENT

In recognition of the requirements of the Minnesota Franchises Law, Minn. Stat. §§ 80C.01 through 80C.22, and of the Rules and Regulations promulgated thereunder by the Minnesota Commissioner of Commerce, Minn. Rules §§ 2860.0100 through 2860.9930, the Disclosure Document for Auntie Anne's Franchisor SPV LLC for the offer of franchises for use in the State of Minnesota is amended to include the following:

  1. Item 6, "Other Fees," shall be amended as follows:

We may be limited in the amount of the Insufficient Funds Fee we may charge you as described in Item 6 of this Disclosure Document. The Minnesota Department of Commerce requires us to disclose to you that, currently, the highest such fee permitted under Minnesota Statute 604.113 is $30.

  1. Item 13, "Trademarks," is amended by the addition of the following paragraph immediately:

The Minnesota Department of Commerce requires us to indemnify Minnesota franchisees against liability to third parties resulting from claims by third parties that the franchisee's use of our trademark infringes on trademark rights of the third party. We do not indemnify against the consequences of a franchisee's use of our trademark except in accordance with the requirements of the Franchise Agreement; and, as a condition to indemnification, you must: (i) provide prompt notice to us of any such claim;

Source: Item 22 — CONTRACTS (FDD page 106)

What This Means (2024 FDD)

According to Auntie Annes's 2024 Franchise Disclosure Document, Minnesota franchisees are entitled to indemnification against trademark infringement claims under specific conditions. The Minnesota Department of Commerce mandates that Auntie Annes indemnify its Minnesota franchisees from liabilities to third parties if a claim arises asserting that the franchisee's use of the Auntie Annes trademark infringes upon the trademark rights of a third party.

However, Auntie Annes does not provide indemnification automatically. To be eligible for indemnification, a franchisee must adhere to the requirements outlined in the Franchise Agreement. Specifically, the franchisee must (i) provide prompt notice to Auntie Annes of any such claim, (ii) tender the defense of the claim to Auntie Annes, and (iii) cooperate with Auntie Annes in defending against the claim.

If Auntie Annes accepts the tender of defense, it reserves the right to manage the defense of the claim. This includes the authority to compromise, settle, or otherwise resolve the claim, as well as the discretion to determine whether or not to appeal any final determination made regarding the claim. In a separate section, it states that the franchisee must provide notice of any claim within 10 days.

Disclaimer: This information is extracted from the 2024 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.