Will Chatime protect a franchisee's right to use trademarks and indemnify them from losses related to claims regarding the use of the Chatime name?

According to the 2025 Chatime Franchise Disclosure Document, Chatime will protect a franchisee's right to use their trademarks and indemnify the franchisee from losses, costs, or expenses arising out of any claim, suit, or demand regarding the use of the name. This protection and indemnification are explicitly stated in an amendment to the franchise agreement.

This means that if a franchisee faces legal challenges or incurs costs due to their authorized use of Chatime's trademarks, service marks, trade names, logotypes, or other commercial symbols, Chatime is obligated to defend the franchisee's right to use those marks and cover the associated losses and expenses. This indemnity provides a significant layer of security for the franchisee, shielding them from potential financial burdens resulting from trademark-related disputes.

However, it's important to note that this protection is specifically addressed within the context of a Minnesota amendment to the franchise agreement. The effectiveness of this provision is contingent upon meeting the jurisdictional requirements of the Minnesota Franchise Act. This suggests that the standard franchise agreement may not include this level of protection and indemnification by default, and it may only apply to franchisees operating within Minnesota or under specific circumstances where Minnesota law applies. Prospective franchisees outside of Minnesota should confirm whether similar protections are offered in their jurisdiction.