What is the deadline for a Crisp & Green franchisee to notify Crisp & Green of a claim to be eligible for indemnification?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
Item 13 of the Disclosure Document is amended by the addition of the following paragraphs:
"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 Crisp & Green's 2024 Franchise Disclosure Document, if a Crisp & Green franchisee in Minnesota is facing a claim, suit, or demand regarding the proper use of Crisp & Green's trademarks, service marks, trade names, logotypes, or other commercial symbols, the franchisee must provide timely notification to Crisp & Green to be eligible for reimbursement of defense costs.
Specifically, the franchisee must notify Crisp & Green in a timely manner of the claim and give Crisp & Green the right to manage the defense of the claim. This includes the right to compromise, settle, or otherwise resolve the claim, and to determine whether to appeal a final determination of the claim.
The FDD does not specify an exact number of days for what constitutes "timely notification." It is important for prospective franchisees in Minnesota to understand this requirement, as failure to notify Crisp & Green promptly could result in the franchisee being responsible for all costs associated with defending against the claim. A prospective franchisee should seek clarification from Crisp & Green regarding what they consider to be "timely notification."