What obligation does Carls Jr. have to protect a franchisee's rights to use trademarks in Minnesota?

According to the 2025 Carls Jr. Franchise Disclosure Document, franchisees in Minnesota have specific protections regarding the use of the brand's trademarks. Carls Jr. is obligated to protect a franchisee's right to use its trademarks, service marks, trade names, logotypes, and other commercial symbols. This protection extends to indemnifying the franchisee from any losses, costs, or expenses that may arise from claims, suits, or demands related to the use of the Carls Jr. name. This requirement is rooted in Minnesota Statutes, Section 80C.12, Subd. 1(g), which considers it unfair for a franchisor not to provide such protection.

This obligation means that if a franchisee in Minnesota is sued for trademark infringement related to their use of the Carls Jr. brand elements as directed, Carls Jr. must cover the franchisee's associated costs. This includes legal fees, settlement costs, and any other expenses incurred as a result of the claim. The purpose of this provision is to shield franchisees from legal challenges that arise from adhering to the franchisor's established branding and operational guidelines.

This protection is significant for prospective franchisees because it mitigates a substantial risk associated with operating a franchise. Trademark disputes can be costly and time-consuming, potentially disrupting business operations. By assuming responsibility for trademark protection, Carls Jr. provides franchisees in Minnesota with added security and confidence, allowing them to focus on running their restaurants without the constant worry of intellectual property litigation. This obligation underscores the importance of understanding state-specific addenda in franchise agreements, as they can provide additional rights and protections beyond the standard franchise terms.