What is the deadline for an Embassy Suites franchisee in Minnesota to provide notice to Embassy Suites of a trademark infringement claim to be eligible for indemnification?
Embassy_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- Minnesota law provide that we must indemnify you against liability to third parties resulting from claims by third parties that your use of our trademarks infringes trademark rights of the third party. We do not indemnify you against the consequences of your use of our trademarks except in accordance with the requirements of the Franchise Agreement, and, as a condition to indemnification, you must provide notice to us of any such claim and tender the defense of the claim to us within 10 days after the claim is asserted. If we accept the tender of defense, we have 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 97–305)
What This Means (2025 FDD)
According to the 2025 Embassy Suites Franchise Disclosure Document, Minnesota franchisees seeking indemnification for trademark infringement claims must adhere to a specific notification timeline. To be eligible for indemnification, the franchisee must provide notice to Embassy Suites of any trademark infringement claim and tender the defense of the claim to them within 10 days after the claim is asserted.
This requirement is a condition precedent to indemnification, meaning that failure to notify Embassy Suites within the specified timeframe could void the franchisee's right to be indemnified against related liabilities. If Embassy Suites accepts the defense, they reserve the right to manage the claim's defense, including decisions on compromise, settlement, resolution, and appeals.
This stipulation highlights the importance of prompt communication and adherence to the franchisor's procedures in the event of a legal claim. It also demonstrates that the franchisee may lose rights if they do not follow the franchisor's procedure. For a prospective Embassy Suites franchisee in Minnesota, understanding and complying with this notification requirement is crucial for protecting their interests and ensuring they can avail themselves of the franchisor's indemnification should a trademark infringement claim arise.