What specific requirement does the Minnesota Department of Commerce impose on Bumble Roofing regarding 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 Minnesota Department of Commerce mandates that Bumble Roofing indemnify its Minnesota franchisees against liabilities arising from third-party claims alleging that the franchisee's use of Bumble Roofing's trademarks infringes upon the trademark rights of another party. This requirement is designed to protect franchisees from potential legal issues related to trademark usage.
However, Bumble Roofing's obligation to indemnify is not unconditional. The franchisor does not provide indemnification for consequences resulting from a franchisee's trademark use unless it aligns with the franchise agreement and Bumble Roofing's standards. Furthermore, the franchisee must promptly notify Bumble Roofing of any such claim and offer them the defense of the claim.
If Bumble Roofing accepts the defense, it reserves the right to manage the claim's defense, including the authority to compromise, settle, resolve, or appeal any final determination. This provision ensures that Bumble Roofing maintains control over the legal strategy and outcome of trademark infringement claims, which is a common practice in franchising to protect the brand's integrity and reputation.