Does Best Brains protect the franchisee's rights to use trademarks in all states, or only in Minnesota?

According to Best Brains' 2025 Franchise Disclosure Document, the franchisor's obligation to protect a franchisee's trademark rights is specifically addressed within the Minnesota Addendum to the Franchise Agreement. This addendum states that Best Brains will protect the franchisee's rights to use its trademarks, service marks, trade names, logotypes, or other commercial symbols and will indemnify the franchisee from any losses, costs, or expenses arising from claims related to the use of the name, but this protection is explicitly mentioned within the context of Minnesota law. Minnesota considers it unfair not to protect the franchisee's right to use the trademarks. Refer to Minnesota Statutes 80C.12, Subd. 1(g).

Outside of Minnesota, the FDD outlines the franchisee's responsibilities regarding the use of Best Brains' marks. Franchisees must use the marks to identify their franchised business and display them prominently in the prescribed manner. Franchisees are also required to notify Best Brains of any potential infringements or challenges to the use of the marks. Best Brains retains sole discretion to take action on infringements and control any related litigation.

While Best Brains agrees to indemnify franchisees if their compliant use of the marks leads to trademark infringement claims, this indemnification is conditional. The franchisee must have notified Best Brains of the claim, complied with the agreement, and allowed Best Brains to defend the claim. If Best Brains defends the claim, they are not obligated to reimburse the franchisee for their own legal counsel. The FDD does not explicitly state that these trademark protections and indemnifications extend to franchisees outside of Minnesota.

Prospective franchisees should clarify with Best Brains whether the trademark protections and indemnification described in the Minnesota Addendum apply to all franchisees, regardless of their location, or if similar protections are provided under the franchise agreement for franchisees operating outside of Minnesota. This clarification is crucial to understanding the scope of trademark protection and potential liabilities in different states.