What costs will Crisp & Green reimburse a franchisee for when defending a claim brought against them?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
"We will protect your right to use the trademarks, service marks, trade names, logotypes or other commercial symbols or indemnify you from any losses, costs or expenses arising out of any claim, suit or demand regarding the proper use of the name.
As required by the Minnesota Franchise Act, Minn. Stat. § 80C.12(g), we will reimburse you for any costs that you incur in the defense of your right to use the Marks, so long as you were using the Marks in the manner that we authorized, and so long as we are timely notified of the claim and given the right to manage the defense of the claim including the right to compromise, settle or otherwise resolve the claim, and to determine whether to appeal a final determination of the claim."
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to the 2024 Crisp & Green Franchise Disclosure Document, Crisp & Green will reimburse a franchisee for costs incurred in defending their right to use the Crisp & Green Marks. This reimbursement is specifically tied to claims, suits, or demands regarding the proper use of the Crisp & Green name. However, this reimbursement is conditional.
Specifically, Crisp & Green will only cover these costs if the franchisee was using the Marks in the manner that Crisp & Green authorized. Additionally, the franchisee must promptly notify Crisp & Green of the claim and give them the right to manage the defense. This includes the right to compromise, settle, or otherwise resolve the claim, and to determine whether to appeal a final determination.
This protection is mandated by the Minnesota Franchise Act for franchisees operating under Minnesota law. It ensures that franchisees are not financially burdened when defending their right to use the brand's trademarks, provided they adhere to the franchisor's guidelines and allow the franchisor to control the legal defense.