Does Stretch Zone protect the franchisee's right to use trademarks in Minnesota?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
(c) 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.
(d) Minnesota considers it unfair to not protect the Franchisee's right to use the trademarks.
Refer to Minnesota Statues, Section 80C.12, Subd. 1(g).
Source: Item 8 — Receipts. Any sale made must be in compliance with § 683(8) of the Franchise Sale Act (N.Y. Gen. Bus. L. § 680 et seq.), which describes the time period a Franchise Disclosure Document (offering prospectus) must be provided to a prospective franchisee before a sale may be made. New York law requires a franchisor to provide the Franchise Disclosure Document at the earliest of the first personal meeting or ten (10) business days before the execution of the franchise or other agreement or the payment of any consideration that relates to the franchise relationship. (FDD pages 99–263)
What This Means (2025 FDD)
According to the 2025 Stretch Zone FDD, Stretch Zone acknowledges the importance of protecting a franchisee's right to use its trademarks in Minnesota. Specifically, Minnesota law considers it unfair for Stretch Zone not to protect the franchisee's right to use the trademarks. This protection extends to the use of service marks, trade names, logotypes, and other commercial symbols.
Stretch Zone also commits to indemnifying the franchisee from any losses, costs, or expenses that may arise from claims, suits, or demands related to the use of the Stretch Zone name. This indicates that Stretch Zone is willing to bear the financial burden if a franchisee faces legal challenges due to trademark usage, providing a level of security for the franchisee. The FDD references Minnesota Statutes, Section 80C.12, Subd. 1(g), indicating that this protection is rooted in Minnesota state law.
This protection is outlined in the Minnesota Addendum to the Franchise Agreement, which addresses specific provisions to align with the Minnesota Franchise Act. This addendum emphasizes that the franchisee's rights under Minnesota Statutes, Chapter 80C, cannot be reduced or abrogated by anything in the Franchise Disclosure Document or agreements. This ensures that Minnesota franchisees receive the full protection afforded to them under state law regarding trademark use and other franchise-related rights.