If Casiola is not timely notified of a claim regarding trademark use in Minnesota, will the franchisee be reimbursed for defense costs?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
Item 13, "Trademarks," Item 13 is supplemented by the addition of the following: As required by the Minnesota Franchise Act, Minn. Stat. Sec. 80C.12(g), we will reimburse you for any costs incurred by you in the defense of your right to use the marks, so long as you were using the marks in the manner authorized by us, and so long as we are timely notified of the claim and given the right to manage the defense of the claim including the right to compromise, settle or otherwise resolve the claim, and to determine whether to appeal a final determination of the claim.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, Casiola will reimburse a franchisee for costs incurred in defending their right to use Casiola's trademarks in Minnesota, provided the franchisee meets certain conditions. Specifically, the franchisee must have been using the trademarks in a manner authorized by Casiola.
Crucially, the franchisee must also provide timely notification to Casiola of any claim regarding trademark use. Furthermore, Casiola must be given the right to manage the defense of the claim. This includes the right to compromise, settle, or otherwise resolve the claim, and to determine whether to appeal a final determination.
Therefore, if a Casiola franchisee in Minnesota fails to promptly notify Casiola of a trademark claim, or if they do not allow Casiola to manage the defense, they will not be reimbursed for any defense costs they incur. This stipulation underscores the importance of adhering to the notification and control requirements outlined in the FDD to ensure eligibility for reimbursement of defense costs.