What Minnesota statute governs reimbursement for costs incurred in the defense of trademark use for a Casiola franchise?
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, Item 13 is supplemented for Minnesota franchisees. The Minnesota Franchise Act, specifically Minn. Stat. Sec. 80C.12(g), mandates that Casiola will reimburse a franchisee for costs incurred in defending their right to use Casiola's trademarks.
However, this reimbursement is conditional. The franchisee must have been using the trademarks in a manner authorized by Casiola. Additionally, Casiola must be promptly notified of the claim and given the right to manage the defense, including the ability to compromise, settle, or otherwise resolve the claim, and to decide whether to appeal any final determination.
This provision is specific to Minnesota franchisees due to the requirements of the Minnesota Franchise Act. Franchisees in other states may not have the same legal protection regarding trademark defense cost reimbursement. This protection ensures that Minnesota Casiola franchisees are not solely burdened with legal costs if they are sued for using Casiola's trademarks as authorized.