What rights does Bang Cookies retain regarding the defense of trademark claims when reimbursing a franchisee in Minnesota?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
- B. Item 13, "Trademarks", Item 13 is supplemented by the addition of the following: As required by the Minnesota Franchise Act, Minn. Stat. Sec. 80C.12(g), we will reimburse you for any costs incurred by you in the defense of your right to use the marks, so long as you were using the marks in the manner authorized by us, and so long as we are timely notified of the claim and given 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 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, franchisees in Minnesota may be reimbursed for costs incurred defending their right to use Bang Cookies's trademarks. However, Bang Cookies retains specific rights regarding the defense of these claims.
Specifically, Bang Cookies must be notified promptly of any trademark claim. Furthermore, Bang Cookies has the right to manage the defense of the claim. This includes the right to compromise, settle, or otherwise resolve the claim. Bang Cookies also has the right to determine whether or not to appeal any final determination related to the claim.
This means that while Bang Cookies will cover the costs of defending the trademark, they maintain control over the legal strategy and decisions. A franchisee cannot independently decide how to handle the defense without Bang Cookies's involvement. This ensures that Bang Cookies can protect its brand and trademarks consistently across all franchise locations, while also adhering to Minnesota franchise law.