Under what conditions will Mrcool reimburse a franchisee for costs incurred defending their right to use Mrcool's trademarks in Minnesota?
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 Mrcool's 2025 Franchise Disclosure Document, Mrcool will reimburse a franchisee in Minnesota for costs incurred defending their right to use Mrcool's trademarks if specific conditions are met. This obligation arises from the Minnesota Franchise Act, Minn. Stat. Sec. 80C.12(g).
The reimbursement is contingent upon the franchisee using the trademarks in the manner authorized by Mrcool. Additionally, the franchisee must promptly notify Mrcool of any claim against their right to use the trademarks.
Furthermore, Mrcool retains the right to manage the defense of the claim, including the authority to compromise, settle, or otherwise resolve the claim. Mrcool also has the right to determine whether to appeal any final determination related to the claim. Therefore, a franchisee's ability to be reimbursed depends heavily on their adherence to Mrcool's trademark usage guidelines and their willingness to allow Mrcool to control the legal defense.