What protection does Minnesota law provide to Chesters franchisees regarding the use of trademarks?

According to Chesters's 2025 Franchise Disclosure Document, Minnesota law provides specific protections for franchisees regarding the use of trademarks. Minnesota Statute 80C.12 Subd. 1(G) considers it unfair for a franchisor not to protect a franchisee's right to use trademarks. Chesters is required to protect the franchisee's rights to use trademarks, service marks, trade names, logotypes, or other commercial symbols. Additionally, Chesters must indemnify the franchisee from any losses, costs, or expenses arising from claims, suits, or demands related to the use of the Chesters name.

This means that if a Chesters franchisee in Minnesota faces legal challenges or incurs costs due to their authorized use of Chesters's trademarks, Chesters is obligated to provide financial protection and legal support. This indemnification helps to shield franchisees from potential financial burdens resulting from trademark-related disputes.

Furthermore, the Minnesota addendum to the franchise agreement includes a clause stating that Chesters agrees to protect the franchisee against claims of infringement or unfair competition regarding the use of the marks, to the extent required by the Minnesota Franchise Act, when Chesters's counsel believes the franchisee's rights warrant protection. This clause reinforces Chesters's commitment to safeguarding the franchisee's trademark usage rights within the bounds of Minnesota law. This protection is conditional based on the opinion of Chesters's legal counsel.