What law applies to disputes covered by Indiana franchise laws for Beverly Anns Cookie?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
Indiana law applies to disputes covered by Indiana franchise laws; otherwise Franchisor's Choice of Law State law applies.
Despite anything to the contrary in the Franchise Agreement, the following provisions will supersede and apply to all Franchises offered and sold in the State of Indiana:
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- The laws of the State of Indiana supersede any provisions of the FDD, the Franchise Agreement, or Franchisor's Choice of Law State law, if such provisions are in conflict with Indiana law.
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- The prohibition by Indiana Code 23-2-2.7-1(7) against unilateral termination of the Franchise without good cause or in bad faith, good cause being defined under law as including any material breach of the Franchise Agreement, will supersede the provisions of the Franchise Agreement relating to termination for cause, to the extent those provisions may be inconsistent with such prohibition.
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- Any provision in the Franchise Agreement that would require you to prospectively assent to a release, assignment, novation, waiver or estoppel which purports to relieve any person from liability imposed by the Indiana Deceptive Franchise Practices Law is void to the extent that such provision violates such law.
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- The covenant not to compete that applies after the expiration or termination of the Franchise Agreement for any reason is hereby modified to the extent necessary to comply with Indiana Code 23-2-2.7-1 (9).
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- The following provision will be added to the Franchise Agreement:
No Limitation on Litigation. Despite the foregoing provisions of this Agreement, any provision in the Agreement which limits in any manner whatsoever litigation brought for breach of the Agreement will be void to the extent that any such contractual provision violates the Indiana Deceptive Franchise Practices Law.
Source: Item 23 — RECEIPTS (FDD pages 57–235)
What This Means (2025 FDD)
According to the 2025 Beverly Anns Cookie Franchise Disclosure Document, Indiana law applies to disputes covered by Indiana franchise laws. However, for other disputes, the law of the Franchisor's Choice of Law State will apply. This means that if a dispute arises that is specifically covered by Indiana's franchise laws, those laws will take precedence.
For prospective Beverly Anns Cookie franchisees in Indiana, this is a notable protection. The FDD clarifies that several provisions are superseded by Indiana law to protect the franchisee. These include items such as the franchisor's ability to unilaterally terminate the franchise without good cause, requirements for franchisees to waive rights under the Indiana Deceptive Franchise Practices Law, and the enforcement of non-compete agreements.
The FDD also states that any provision limiting litigation for breach of the agreement is void if it violates the Indiana Deceptive Franchise Practices Law. This ensures that Indiana franchisees have the ability to pursue legal action without being unduly restricted by the franchise agreement, provided the dispute falls under Indiana franchise laws.