To what extent are the sections in the 360 Painting Franchise Agreement that relate to non-renewal applicable to Indiana franchisees?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
ect to the provisions of the Indiana Deceptive Franchise Practices Law [IC 23-2-2.7-1(10)].
-
- 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.
AMENDMENT TO 360 PAINTING, LLC FRANCHISE AGREEMENT FOR THE STATE OF INDIANA
("Franchisee" or "you") and 360 Painting, LLC ("Franchisor"), dated (the the Franchise Agreement (the "Amendment"). "Franchise Agreement") shall be amended by the following, which should be considered an integral part of Indiana Law Modification through 23-2-2-2.5-51, the parties to the Franchise Agreement agree as follows: In recognition of the requirements of the Indiana Deceptive Franchise Practices Law, Indiana Code §§ 23- 2-2.7-1 through 23-2-2.7-10, and the Indiana Franchise Disclosure Law, Indiana Code §§ 23-2-2-2.5-1 1. inconsistent with the terms of the Franchise Agreement.
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, the sections in the Franchise Agreement pertaining to non-renewal are applicable to Indiana franchisees only to the extent that they do not conflict with or are prohibited by Indiana law. In cases of inconsistency or prohibition, Indiana law takes precedence. This means that while the Franchise Agreement sets forth general terms for non-renewal, Indiana's specific franchise laws will ultimately govern the relationship between 360 Painting and its Indiana-based franchisees.
Specifically, the 360 Painting FDD states that if any provisions in the Franchise Agreement regarding termination and non-renewal are inconsistent with either the Indiana Deceptive Franchise Practices Law or the Indiana Franchise Disclosure Law, then such laws will apply. This ensures that Indiana franchisees are protected by their state's franchise laws, which may offer different or more favorable terms than the standard Franchise Agreement.
Furthermore, the 360 Painting FDD highlights that certain provisions requiring a general release as a condition to renewal are inapplicable to Indiana franchisees. This is because Indiana law prohibits prospective general releases of claims subject to the Indiana Deceptive Franchise Practices Law. Therefore, Indiana franchisees cannot be forced to waive their rights under this law as a condition of renewing their franchise agreement with 360 Painting. This ensures that Indiana franchisees retain their legal rights and protections under state law, regardless of what the standard Franchise Agreement might stipulate.