What are the required actions for a Mrcool franchisee in Minnesota to receive reimbursement for trademark defense costs?
Mrcool Franchise · 2025 FDDAnswer from 2025 FDD Document
Item 13, "Trademarks", Item 13 is supplemented by the addition of the following: As required by the Minnesota Franchise Act, Minn.
Stat.
Sec. 80C.12(g), we will reimburse you for any costs incurred by you in the defense of your right to use the marks, so long as you were using the marks in the manner authorized by us, and so long as we are timely notified of the claim and given 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 55–263)
What This Means (2025 FDD)
According to the 2025 Mrcool Franchise Disclosure Document, Minnesota franchisees have specific rights regarding trademark defense. Mrcool will reimburse a Minnesota franchisee for costs incurred in defending their right to use Mrcool's trademarks if the franchisee meets certain conditions.
First, the franchisee must have been using the trademarks in a manner that Mrcool authorized. Second, the franchisee must promptly notify Mrcool of any claim against their use of the trademarks. Finally, Mrcool must be given the right to manage the defense of the claim. This includes the right to compromise, settle, or otherwise resolve the claim, and to determine whether or not to appeal any final determination of the claim.
This amendment to Item 13 of the FDD is a requirement under the Minnesota Franchise Act, ensuring that Mrcool franchisees in Minnesota receive support in protecting the brand's trademarks. This protection is more robust than in some other states, where franchisees may bear the full cost of trademark defense. However, it's important to note that Mrcool retains control over the legal strategy in any such defense.