Under what condition will Chicken Guy indemnify a Minnesota franchisee against trademark infringement claims?
Chicken_Guy Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the foregoing, Chicken Guy will indemnify Franchisee against liability to a third party resulting from claims that Franchisee's use of a Proprietary Mark infringes trademark rights of a third party; provided, that Chicken Guy will not indemnify against the consequences of Franchisee's use of the Proprietary Marks unless the use is in accordance with the requirements of this Agreement and the System.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–46)
What This Means (2025 FDD)
According to the 2025 Chicken Guy FDD, Chicken Guy will indemnify a Minnesota franchisee against liability to a third party if the liability results from claims that the franchisee's use of a Proprietary Mark infringes trademark rights of a third party. However, this indemnification is conditional.
Chicken Guy will not provide indemnification if the franchisee's use of the Proprietary Marks is not in accordance with the requirements outlined in the Franchise Agreement and the System. This means the franchisee must adhere to all guidelines, standards, and procedures set forth by Chicken Guy in the operation of the franchise.
This condition is important for prospective franchisees to understand. It highlights the necessity of strictly following the Chicken Guy system and adhering to the Franchise Agreement to maintain the franchisor's support in case of trademark infringement claims. Failure to comply with the system could leave the franchisee responsible for defending against such claims without the franchisor's assistance.