What condition must a Bumble Roofing franchisee meet to receive indemnification from the franchisor for trademark infringement claims in Minnesota?
Bumble_Roofing Franchise · 2025 FDDAnswer from 2025 FDD Document
The Minnesota Department of Commerce requires that a franchisor indemnify Minnesota Franchisees against liability to third parties resulting from claims by third parties that the franchisee's use of the franchisor's trademark infringes upon the trademark rights of the third party. The franchisor does not indemnify against the consequences of a franchisee's use of a franchisor's trademark except in accordance with the requirements of the franchise agreement, and as the condition to an indemnification, the franchisee must provide notice to the franchisor of any such claim immediately and tender the defense of the claim to the franchisor. If the franchisor accepts tender of defense, the franchisor has the right to manage the defense of the claim, including the right to compromise, settle or otherwise resolve the claim, or to determine whether to appeal a final determination of the claim.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 43–45)
What This Means (2025 FDD)
According to Bumble Roofing's 2025 Franchise Disclosure Document, the Minnesota Department of Commerce mandates that Bumble Roofing protect its Minnesota franchisees from liabilities arising from third-party claims of trademark infringement. However, Bumble Roofing only provides this protection if the franchisee adheres to specific requirements outlined in the Franchise Agreement and Bumble Roofing's standards.
To be eligible for indemnification, a Bumble Roofing franchisee in Minnesota must immediately notify Bumble Roofing of any trademark infringement claim. Furthermore, the franchisee must allow Bumble Roofing to manage the defense of the claim. This includes the right for Bumble Roofing to compromise, settle, resolve, or appeal the claim's final determination.
This means that a franchisee cannot independently handle the legal defense. They must promptly hand over control to Bumble Roofing. This condition ensures that Bumble Roofing can control the legal strategy and potentially minimize costs or damages, protecting its brand and interests while also fulfilling its legal obligation to indemnify the franchisee.