What specific Indiana statutes supersede the Beverly Anns Cookie Franchise Agreement?
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.
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — RECEIPTS (FDD pages 57–235)
What This Means (2025 FDD)
According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, several Indiana statutes supersede the franchise agreement for franchises offered and sold in Indiana. Specifically, Indiana Code 23-2-2.7-1(7) makes it unlawful for Beverly Anns Cookie to unilaterally terminate the Franchise Agreement unless there is a material violation and the termination is not in bad faith. This supersedes any conflicting termination clauses in the agreement. Also, Indiana Code 23-2-2.7-1(5) prohibits Beverly Anns Cookie from requiring a franchisee to agree to a prospective general release of claims subject to the Indiana Deceptive Franchise Practices Act.
Additionally, any provision in the Franchise Agreement that requires a franchisee to prospectively assent to a release, assignment, novation, waiver, or estoppel that relieves any person from liability imposed by the Indiana Deceptive Franchise Practices Law is void to the extent it violates such law. The covenant not to compete after the franchise agreement's expiration or termination is modified to comply with Indiana Code 23-2-2.7-1(9). Furthermore, any provision limiting litigation for breach of the agreement is void to the extent it violates the Indiana Deceptive Franchise Practices Law.
Finally, the FDD states that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Beverly Anns Cookie or its representatives. This provision supersedes any conflicting terms in any document executed in connection with the franchise. These statutes aim to protect franchisees in Indiana from potentially unfair or deceptive practices by the franchisor.