To what extent are the sections in the 360 Painting Franchise Agreement relating to termination, non-renewal, governing law, venue for litigation, modification, covenants not to compete, and limitations period applicable to Indiana franchisees?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
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 FDD, the 360 Painting Franchise Agreement has specific stipulations for Indiana franchisees to comply with Indiana law. The standard Franchise Agreement is modified by an addendum to comply with the Indiana Deceptive Franchise Practices Law. This addendum addresses key areas of the franchise relationship to protect the franchisee's rights under Indiana law.
Specifically, the sections of the 360 Painting Franchise Agreement that deal with termination, non-renewal, governing law, venue for litigation, modification, covenants not to compete, and any limitations period for bringing claims 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 ensures that Indiana franchisees are governed by the protections afforded to them under Indiana state law, regardless of what the standard franchise agreement might state.
This modification is important for prospective 360 Painting franchisees in Indiana because it means that certain terms in the standard Franchise Agreement that might be unfavorable to the franchisee are superseded by Indiana law. For example, the franchisee has the right to litigate in Indiana, and covenants not to compete are limited to the franchisee's protected area. Furthermore, any requirement for a general release of claims that would violate the Indiana Deceptive Franchise Practices Law is not applicable. Franchisees should carefully review the addendum and understand their rights under Indiana law, as these rights will govern their franchise relationship.