What conditions must a Cream franchisee meet to be reimbursed for damages and expenses in a trademark infringement proceeding?

According to the 2025 Cream FDD, the franchisor will protect the franchisee's rights to use trademarks, service marks, trade names, logotypes, or other commercial symbols. Cream will also indemnify the franchisee from any loss, costs, or expenses arising out of any claim, suit, or demand regarding the use of the name, as stated in Minnesota Statutes, Section 80C.12, Subd. 1(g). Minnesota considers it unfair to not protect the franchisee's right to use the trademarks.

This protection and indemnification are particularly relevant for prospective franchisees as it shields them from potential financial burdens associated with legal challenges related to trademark usage. Trademark infringement claims can be costly, involving legal fees, damages, and potential loss of business. Cream's commitment to protect and indemnify franchisees provides a safety net, ensuring that franchisees can operate their businesses without the constant fear of trademark-related lawsuits.

However, this protection is specifically highlighted within the context of Minnesota law. For franchisees operating outside of Minnesota, the extent of trademark protection and indemnification may vary depending on local laws and the specific terms outlined in the franchise agreement. It is important for prospective franchisees to carefully review the franchise agreement and consult with legal counsel to understand the full scope of trademark protection offered in their respective jurisdictions. Franchisees should also inquire about Cream's history of trademark protection and any past instances where the franchisor has defended franchisees against infringement claims.