What law governs the Franchise Agreement and related documents for a 360 Painting franchisee in Indiana?
360_Painting Franchise · 2025 FDDAnswer from 2025 FDD Document
The Indiana Deceptive Franchise Practices Law (Indiana Code 23-2-2.7) contains certain laws governing the relationship between a Franchisor and Franchisee. Certain of these laws conflict with provisions contained in our customary Franchise Agreement and related documents. Set forth below is an overview of certain disclosures contained in the attached Franchise Disclosure Document which are amended by virtue of the Indiana law.
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- The Franchise Agreement and related documents by and between us and you, as an Indiana franchisee, will be governed by Indiana law and not the law of the Commonwealth of Virginia.
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- You, as an Indiana franchisee, have the right to litigate in Indiana and are not restricted to the requirements in the Franchise Agreement to sue only in Albemarle Virginia.
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- The covenants of non-competition with respect to you, as an Indiana franchisee, will be limited to an area equal to the protected area granted to you and other Franchisees.
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- Indiana law prohibits a prospective general release of claims subject to the Indiana Deceptive Franchise Practices Law.
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- The reservation of rights to any specified remedy or limitation of remedies available to you, as an Indiana franchise, contained in Sections 19.1 and 27.4 of the Franchise Agreement is subject to the provisions of the Indiana Deceptive Franchise Practices Law [IC 23-2-2.7-1(10)].
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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, the Indiana Deceptive Franchise Practices Law (Indiana Code 23-2-2.7) governs the Franchise Agreement and related documents for Indiana franchisees. This law takes precedence over any conflicting provisions in 360 Painting's standard Franchise Agreement, which is typically governed by the laws of the Commonwealth of Virginia.
The Indiana-specific addendum to the Franchise Disclosure Document clarifies that several aspects of the franchise relationship are subject to Indiana law. These include the franchisee's right to litigate in Indiana, the scope of non-competition covenants, and the enforceability of general releases of claims. Additionally, any sections of the Franchise Agreement relating to termination, non-renewal, governing law, venue for litigation, modification, covenants not to compete, and limitations periods are only applicable if they are consistent with Indiana law.
For a prospective 360 Painting franchisee in Indiana, this means that Indiana law offers certain protections and rights that may differ from the standard franchise agreement. It is important for franchisees to understand these state-specific provisions and how they impact their rights and obligations. This ensures that the franchisee's interests are protected under Indiana law, especially in matters of dispute resolution, termination, and competitive restrictions.