To what extent will Belocal protect a franchisee's right to use trademarks in Minnesota, and what indemnity is provided?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
to Item 13 of the disclosure document:
We will protect your right to use the trademarks, service marks, trade names, logos, or other commercial symbols or will indemnify you from any loss, costs, or expenses arising out of any claim, suit, or demand regarding the use of the marks to the extent required by Minnesota law.
- The following is added to Item 17 of the disclosure document:
Under Minnesota law, and except in certain specified cases, we must give you 90 days notice of termination with 60 days to cure.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, the company provides trademark protection and indemnity to Minnesota franchisees as required by Minnesota law. Specifically, Belocal will protect a franchisee's right to use its trademarks, service marks, trade names, logos, or other commercial symbols.
Belocal will also indemnify the franchisee from any losses, costs, or expenses arising out of any claim, suit, or demand regarding the use of the marks. This protection and indemnity are limited to the extent required by Minnesota law, suggesting that the scope of protection is defined by state statutes and legal precedents.
Furthermore, the FDD includes an amendment clarifying that the Minnesota Department of Commerce mandates franchisors to indemnify Minnesota franchisees against liability to third parties resulting from claims that the franchisee's use of Belocal's proprietary marks infringes trademark rights of a third party. This provision reinforces Belocal's obligation to protect its franchisees in Minnesota from trademark infringement claims, ensuring compliance with Minnesota's franchise regulations.