What conditions must a Degree Wellness franchisee in Minnesota meet to be reimbursed for costs incurred defending a trademark infringement claim?
Degree_Wellness Franchise · 2025 FDDAnswer from 2025 FDD Document
the Disclosure Document and the Franchise Agreement state that we have discretion to control any litigation or other proceeding arising out of any actual or alleged infringement, challenging, or claim relating to any Mark, and that we will (i) indemnify you against all damages for which you are held liable in any trademark infringement proceeding arising out of your use of any Mark under and in compliance with your Franchise Agreement; and (ii) reimburse for all costs you reasonable incur
in defending the claim; however, you must have timely notified us of the claim, and complied with your Franchise Agreement. Minnesota law requires that the Disclosure Document and Franchise Agreement must state that the franchisor will protect the franchisee's right to use the trademarks, service marks, trade names, logotypes, or other commercial symbols, and/or indemnify the franchisee from any loss, costs, or expenses arising out of any claim, suit, or demand regarding the use of the same.
Source: Item 23 — Receipts (FDD pages 66–257)
What This Means (2025 FDD)
According to Degree Wellness's 2025 Franchise Disclosure Document, a franchisee in Minnesota may be reimbursed for costs incurred while defending a trademark infringement claim if they meet certain conditions. Degree Wellness will indemnify the franchisee against damages they are held liable for in a trademark infringement proceeding, provided the franchisee's use of the mark was in compliance with the Franchise Agreement.
To be eligible for reimbursement of costs, the franchisee must have promptly notified Degree Wellness of the claim. Additionally, the franchisee must have complied with all terms of their Franchise Agreement.
Minnesota law mandates that the franchise agreement stipulates Degree Wellness will protect the franchisee’s right to use trademarks and indemnify them from losses, costs, or expenses related to claims regarding the use of those trademarks. This protection is crucial for franchisees as it mitigates potential financial risks associated with trademark disputes.