In Minnesota, will the Bombs Away franchisor protect the franchisee's rights to use the trademarks?
Bombs_Away Franchise · 2024 FDDAnswer from 2024 FDD Document
- The franchisor will protect the franchisee's rights to use the trademarks, service marks, trade names, logotypes or other commercial symbols or indemnify the franchisee from any loss, costs or expenses arising out of any claim, suit or demand regarding the use of the name.
- Minnesota considers it unfair to not protect the franchisee's right to use the trademarks. Refer to Minnesota Statues, Section 80C.12, Subd. 1(g).
- Minnesota Rules 2860.4400(D) prohibits a franchisor from requiring a franchisee to assent to a general release.
- The franchisee cannot consent to the franchisor obtaining injunctive relief. The franchisor may seek injunctive relief. See Minn. Rules 2860.4400J. Also, a court will determine if a bond is required.
- The Limitations of Claims section must comply with Minnesota Statutes, Section 80C.17, Subd. 5, which states "No action may be commenced pursuant to this Section more than three years after the cause of action accrues."
Source: Item 23 — RECEIPTS (FDD pages 36–117)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the franchisor will protect the franchisee's rights to use trademarks, service marks, trade names, logotypes, or other commercial symbols. They will also indemnify the franchisee from any losses, costs, or expenses arising from claims, suits, or demands regarding the use of the name in Minnesota. The FDD specifies that Minnesota considers it unfair for a franchisor not to protect the franchisee's right to use the trademarks, referencing Minnesota Statutes, Section 80C.12, Subd. 1(g). This indicates that Bombs Away acknowledges and will adhere to Minnesota state law regarding trademark protection for its franchisees.
This protection is a significant benefit for a Bombs Away franchisee in Minnesota, as it reduces the risk of legal challenges related to the use of the brand's trademarks. Indemnification means that Bombs Away will cover the franchisee's costs if a third party sues them over trademark usage, providing financial security and peace of mind. This is particularly important in a competitive market where trademark disputes can be costly and disruptive.
Furthermore, the Minnesota Addendum to the Disclosure Document reinforces franchisee rights by stating that nothing in the Franchise Disclosure Document or agreements can reduce any of the franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or the franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction. This clause ensures that Bombs Away franchisees in Minnesota receive the full protection afforded to them under state law, including trademark rights.