Under what condition will Fitstop indemnify a franchisee against liability to a third party in Minnesota?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
Item 13 of the Disclosure Document is supplemented by the following:
- Notwithstanding the foregoing, we will indemnify you against liability to a third party resulting from claims that your use of a Mark infringes trademark rights of a third party; provided, that we will not indemnify against the consequences of your use of the Marks unless the use is in accordance with the requirements of the Franchise Agreement and the System.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, a supplement to Item 13 states that Fitstop will indemnify a franchisee operating in Minnesota against liability to a third party. This indemnification is specifically for claims resulting from the franchisee's use of Fitstop's marks infringing on the trademark rights of a third party.
However, this indemnification is conditional. Fitstop will only provide indemnity if the franchisee's use of the marks is in accordance with the requirements outlined in the Franchise Agreement and the Fitstop System standards. This means the franchisee must adhere to all guidelines and procedures established by Fitstop regarding the use of its trademarks.
This condition is significant for prospective Fitstop franchisees in Minnesota. It highlights the importance of strictly following the Franchise Agreement and System standards to ensure they are protected against potential trademark infringement claims. Failure to comply with these requirements could result in the franchisee being held liable for any such claims, without the protection of indemnification from Fitstop.