Under Minnesota law, does Belocal indemnify franchisees against liability to third parties resulting from trademark infringement claims?

According to Belocal's 2025 Franchise Disclosure Document, the Minnesota Department of Commerce requires that Belocal, as the franchisor, indemnify its Minnesota franchisees against liability to third parties. This indemnification is specifically for claims arising from the franchisee's use of Belocal's proprietary marks that may infringe on the trademark rights of a third party. This requirement is part of the Minnesota Franchise Act.

This means that if a Belocal franchisee in Minnesota is sued by a third party for using Belocal's trademarks in a way that allegedly infringes on the third party's trademark rights, Belocal is required to cover the franchisee's liability. This protection is significant for franchisees as it shields them from potentially substantial legal costs and damages associated with trademark infringement claims.

However, the FDD also states that if any provision in the Franchise Agreement is inconsistent with the Minnesota Franchise Act, the Act's requirements will supersede the agreement's provisions. Therefore, franchisees should ensure that the franchise agreement aligns with Minnesota law to fully benefit from the protections offered by the state's franchise act.