Does Deka Lash have to protect a franchisee's rights to use trademarks in all states, or only in Minnesota?
Deka_Lash Franchise · 2024 FDDAnswer from 2024 FDD Document
MINNESOTA ADDENDUM TO THE DISCLOSURE DOCUMENT
As to franchises governed by the Minnesota franchise laws, if any of the terms of the Disclosure Document are inconsistent with the terms below, the terms below control.
- Minn. Stat. §80C.21 and Minn. Rule 2860.4400(J) prohibit the franchisor from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial, or requiring the franchisee to consent to liquidated damages, termination penalties or judgment notes. In addition, nothing in the Franchise Disclosure Document or agreements can abrogate or reduce (1) any of the franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or (2) franchisee's rights to any procedure, forum, or remedies provided for by the laws of the jurisdiction.
- With respect to franchises governed by Minnesota law, the franchisor will comply with Minn. Stat. Sec. 80C.14 Subds. 3, 4, and 5 which require (except in certain specified cases), that a franchisee be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice for non-renewal of the franchise agreement and that consent to the transfer of the franchise will not be unreasonably withheld.
- The franchisor will protect the franchisee's rights to use the trademarks, service marks, trade names, logotypes or other commercial symbols or indemnify the franchisee from any loss, costs or expenses arising out of any claim, suit or demand regarding the use of the name.
Minnesota considers it unfair to not protect the franchisee's right to use the trademarks. Refer to Minnesota Statutes 80C.12, Subd. 1(g).
- Minnesota Rules 2860.4400(D) prohibits a franchisor from requiring a franchisee to assent to a general release.
- The franchisee cannot consent to the franchisor obtaining injunctive relief. The franchisor may seek injunctive relief. See Minn. Rules 2860.4400J.
Also, a court will determine if a bond is required.
The Limitations of Claims section must comply with Minnesota Statutes, Section 80C.17, Subd. 5.
Source: Item 23 — RECEIPT (FDD pages 63–234)
What This Means (2024 FDD)
According to the 2024 Deka Lash Franchise Disclosure Document, Deka Lash's obligation to protect a franchisee's trademark rights extends specifically to franchisees operating under Minnesota law. The Minnesota Addendum to the Disclosure Document states that Deka Lash will protect the franchisee's rights to use trademarks, service marks, trade names, logotypes, or other commercial symbols and indemnify the franchisee from any losses, costs, or expenses arising from claims related to the use of the name. This protection is explicitly tied to franchises governed by Minnesota law. Minnesota considers it unfair to not protect the franchisee's right to use the trademarks, referencing Minnesota Statutes 80C.12, Subd. 1(g).
This means that if a Deka Lash franchisee operates in Minnesota, Deka Lash is legally bound to safeguard their trademark rights within the scope defined by Minnesota law. This obligation includes defending the franchisee against claims or suits arising from the use of Deka Lash's trademarks and providing indemnity for any associated losses or expenses.
For prospective franchisees outside of Minnesota, the FDD excerpt does not explicitly state whether similar protections apply. Franchisees operating outside of Minnesota should review their Franchise Agreement and consult with legal counsel to understand the extent of trademark protection offered by Deka Lash in their specific jurisdiction. It is common practice for franchise agreements to address trademark protection, but the specific terms can vary.
Therefore, while Deka Lash is obligated to protect trademark rights for franchisees in Minnesota, the FDD excerpt does not provide enough information to determine whether this protection extends to franchisees in other states. Prospective franchisees should seek clarification from Deka Lash regarding trademark protection in their specific state.