Who is responsible for the direct costs of the franchisee's cooperation in defending Crisp & Green trademark infringement claims?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
We will undertake the defense of any claim of infringement by third parties involving the Crisp & Green Marks, and you will cooperate with the defense in any reasonable manner prescribed by us with any direct cost of such cooperation to be borne by us.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, specifically an addendum for franchises sold in Minnesota, Crisp & Green will bear the direct costs associated with a franchisee's cooperation in defending against trademark infringement claims. This protection applies when third parties claim infringement of the Crisp & Green Marks.
For a Crisp & Green franchisee in Minnesota, this means that if a legal claim arises asserting that the franchisee's use of the Crisp & Green trademarks infringes on someone else's rights, Crisp & Green will take the lead in defending against the claim. Furthermore, if Crisp & Green requires the franchisee to actively assist in this defense, such as by providing documents or testimony, Crisp & Green will cover the direct costs the franchisee incurs as a result.
This arrangement offers a significant benefit to the franchisee, as trademark litigation can be expensive. By having Crisp & Green assume responsibility for these direct costs, the franchisee is shielded from a potentially substantial financial burden. However, this protection is specifically tied to Minnesota law and may not apply to franchises located in other states, as indicated by the addendum's limited scope.