What is Chesters required to do to protect a franchisee's rights to use trademarks in Minnesota?

According to Chesters's 2025 Franchise Disclosure Document, Minnesota Statute 80C.12 Subd. 1(G) considers it unfair for Chesters not to protect a franchisee's right to use trademarks. Therefore, Chesters is required to protect the franchisee's rights to use the trademarks, service marks, trade names, logotypes, or other commercial symbols. Chesters must also indemnify the franchisee from any loss, costs, or expenses arising out of any claim, suit, or demand regarding the use of the name.

This means that if a Chesters franchisee in Minnesota faces legal issues related to using Chesters's trademarks, Chesters is obligated to defend the franchisee's right to use those trademarks. Furthermore, Chesters must cover any financial losses, legal costs, or other expenses the franchisee incurs due to claims or lawsuits about the use of the Chesters name and associated branding. This protection is a significant benefit for franchisees, as it shields them from potential legal liabilities associated with brand-related intellectual property.

Additionally, the Minnesota addendum to the franchise agreement includes language that Chesters agrees to protect the franchisee, to the extent required by the Minnesota Franchise Act, against claims of infringement or unfair competition with respect to the use of the Marks when, in the opinion of their counsel, the franchisee's rights warrant protection. This clause reinforces Chesters's commitment to safeguarding the franchisee's trademark rights within the bounds of Minnesota law. However, the protection is contingent on Chesters's counsel's assessment of whether the franchisee's rights merit protection, which introduces a degree of subjectivity.

Prospective franchisees should note that while Chesters provides trademark protection, the extent of this protection is subject to legal interpretation and the specifics of Minnesota franchise law. Franchisees should carefully review the franchise agreement and consult with legal counsel to fully understand the scope and limitations of this protection. This ensures they are aware of their rights and responsibilities regarding trademark usage and potential liabilities.