Can Brueggers Bagels require a franchisee in Indiana to prospectively assent to a release that relieves any person from liability imposed by Indiana franchise law?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
INDIANA ADDENDUM TO THE FRANCHISE AGREEMENT AND LICENSE AGREEMENT
FRANCHISOR and FRANCHISEE have signed a Franchise Agreement or License Agreement for a franchise to be located in Indiana. This Addendum reflects provisions of Indiana law.
Pursuant to Section 23.2-2.7-1 of the Indiana Code, it is unlawful for any franchise agreement entered into between any franchisor and a franchisee who is either a resident of Indiana or a nonresident who will be operating a franchise in Indiana to contain any of the following provisions:
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- (5) Requiring the franchisee to prospectively assent to a release, assignment, novation, waiver, or estoppel which purports to relieve any person from liability to be imposed by this chapter or requiring any controversy between the franchisee and the franchisor to be referred to any person, if referral would be binding on the franchisee.
This subdivision does not apply to arbitration before an independent arbitrator.
Source: Item 23 — RECEIPTS (FDD pages 61–335)
What This Means (2025 FDD)
According to Brueggers Bagels's 2025 Franchise Disclosure Document, Indiana law prohibits Brueggers Bagels from requiring a franchisee to prospectively agree to a release, assignment, novation, waiver, or estoppel that would relieve any person from liability imposed by Indiana franchise law. This protection is explicitly outlined in the Indiana Addendum to the Franchise Agreement. This means that Brueggers Bagels franchisees in Indiana cannot be forced to sign away their rights under Indiana franchise law before any dispute arises.
This provision ensures that franchisees retain their legal rights and protections under Indiana law. It prevents Brueggers Bagels from using its potentially stronger bargaining position to force franchisees into unfair agreements that limit their ability to seek legal recourse in the future. The Indiana Code specifically addresses this issue to protect franchisees operating within the state, whether they are residents or non-residents.
For a prospective Brueggers Bagels franchisee in Indiana, this is a significant safeguard. It means that any attempt by Brueggers Bagels to include a clause in the franchise agreement that requires the franchisee to waive their rights under Indiana franchise law would be unenforceable. This protection helps to level the playing field and ensures that franchisees have access to legal remedies if Brueggers Bagels violates the terms of the franchise agreement or Indiana franchise law.