Does Bumble Roofing indemnify Minnesota franchisees against liability to third parties for trademark infringement claims?
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 franchisor is required to indemnify Minnesota franchisees against liability to third parties resulting from claims that the franchisee's use of Bumble Roofing's trademarks infringes upon the trademark rights of a third party. However, Bumble Roofing does not indemnify against the consequences of a franchisee's use of the trademark except in accordance with the requirements of the franchise agreement and Bumble Roofing's standards.
As a condition for this indemnification, the franchisee must immediately notify Bumble Roofing of any such claim and offer the defense of the claim to them. If Bumble Roofing accepts the defense, they have the right to manage the defense, including settling the claim or deciding whether to appeal any final determination.
This means that if a Bumble Roofing franchisee in Minnesota is sued for trademark infringement due to their use of the Bumble Roofing trademark, Bumble Roofing will cover the franchisee's liability, provided the franchisee adheres to the notification and defense tender requirements. This protection is mandated by the Minnesota Department of Commerce, offering a significant benefit to franchisees operating in that state.