What Minnesota statute governs Cream's obligation to protect the franchisee's rights to use the Marks?

According to Cream's 2025 Franchise Disclosure Document, if a Cream franchisee's business is operated in Minnesota, Cream will protect the franchisee's rights to use the Marks (trademarks, service marks, trade names, logotypes, or other commercial symbols) and will cover any losses, costs, or expenses from claims, suits, or demands regarding the franchisee's use of the Marks. This obligation is in accordance with Minn. Stat. Sec 80C.12 Subd. 1(g). This means that Cream acknowledges the importance of protecting the brand's trademarks and will take responsibility for legal issues arising from their use by the franchisee in Minnesota.

This protection is conditional, as it applies only if the franchisee has complied with all provisions of the Franchise Agreement applicable to the Marks. Therefore, a franchisee must adhere to Cream's guidelines and standards for using the trademarks to be eligible for this protection. This requirement ensures that the franchisee is using the Marks in a way that aligns with the brand's image and standards, which is crucial for maintaining brand consistency and reputation.

For a prospective Cream franchisee in Minnesota, this provision offers a significant benefit. It provides assurance that Cream will stand behind its brand and defend the franchisee's right to use the trademarks. However, it also places a responsibility on the franchisee to use the Marks correctly and in accordance with the Franchise Agreement. Understanding and adhering to these guidelines is essential for a successful and legally protected franchise operation.