In case of inconsistency between the 360 Painting Franchise Agreement and Indiana law, which law controls?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
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- The Sections in the Franchise Agreement that relate to termination, non-renewal, governing law, venue for litigation, modification, covenants not to compete and any limitations period for bringing claims are only applicable to the extent they are not inconsistent with or prohibited by Indiana law. Indiana law will control to the extent of any inconsistency or prohibition.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 42–46)
What This Means (2025 FDD)
According to the 2025 360 Painting Franchise Disclosure Document, if there are inconsistencies between the Franchise Agreement and Indiana law, Indiana law will take precedence. This applies specifically to provisions concerning termination, non-renewal, governing law, venue for litigation, modification, covenants not to compete, and any limitations period for bringing claims.
For a prospective 360 Painting franchisee in Indiana, this means that certain standard clauses in the franchise agreement that might conflict with Indiana's franchise laws will be superseded by those laws. This ensures that Indiana franchisees receive the protections afforded to them under Indiana law, particularly the Indiana Deceptive Franchise Practices Law and the Indiana Franchise Disclosure Law.
This modification is important because it addresses potential conflicts in areas critical to the franchisee-franchisor relationship, such as dispute resolution and competitive restrictions. It also prevents 360 Painting from enforcing terms that might violate Indiana law, such as requiring a general release of claims that are subject to the Indiana Deceptive Franchise Practices Law. This addendum aims to protect the franchisee's rights and ensure compliance with Indiana state regulations.