What is the required action a Bumble Roofing franchisee must take to be eligible for indemnification against 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, specifically the Minnesota Addendum, a franchisee must take certain actions to be eligible for indemnification against trademark infringement claims. The Minnesota Department of Commerce mandates that Bumble Roofing protect its Minnesota franchisees from liabilities to third parties if those liabilities arise from claims that the franchisee's use of Bumble Roofing's trademarks infringes upon a third party's trademark rights. However, Bumble Roofing only provides this indemnification if the franchisee adheres to the requirements outlined in the franchise agreement and Bumble Roofing's standards.
To be eligible for indemnification, a Bumble Roofing franchisee must immediately notify Bumble Roofing of any such claim and formally tender the defense of the claim to the company. This means the franchisee must promptly inform Bumble Roofing about the infringement claim and offer them the opportunity to take over the legal defense.
If Bumble Roofing accepts the defense, it has the right to manage the claim's defense. This includes the authority to compromise, settle, resolve the claim in any way, or decide whether to appeal any final determination made about the claim. This ensures Bumble Roofing maintains control over how trademark infringement claims are handled, protecting its brand and interests while also providing a framework for supporting its franchisees in Minnesota.