Does the Indiana Rider prohibit arbitration between Care Plus Medical Ucc and the franchisee?
Care_Plus_Medical_Ucc Franchise · 2024 FDDAnswer from 2024 FDD Document
INDIANA RIDER TO FRANCHISE AND MULTI-UNIT DEVELOPMENT AGREEMENT
This Rider amends the Franchise and Multi-Unit Development Agreement dated (the "Agreement"), between Care Plus Medical UCC, LLC, a Wyoming Limited Liability Company ("Care Plus Medical UCC") and, a ("Franchisee").
- **1.
Definitions.** Capitalized terms used but not defined in this Rider have the meanings given in the Agreement.
The "Indiana Acts" means the Indiana Franchise Act and the Indiana Deceptive Franchise Practices Act.
- **2.
Certain Provisions Modified.** Any provision of the Agreement which would have any of the following effects is hereby modified to the extent required for the Agreement to be in compliance with the Indiana Acts:
- (1) Requiring goods, supplies, inventories, or services to be purchased exclusively from the franchisor or sources designated by the franchisor where such goods, supplies, inventories, or services of comparable quality are available from sources other than those designated by the franchisor.
However, the publication by the franchisor of a list of approved suppliers of goods, supplies, inventories, or services or the requirement that such goods, supplies, inventories, or services comply with specifications and standards prescribed by the franchisor does not constitute designation of a source nor does a reasonable right of the franchisor to disapprove a supplier constitute a designation.
This subdivision does not apply to the principal goods, supplies, inventories, or services manufactured or trademarked by the franchisor.
(2) Allowing the franchisor to establish a franchisor-owned outlet engaged in a substantially identical business to that of the franchisee within the exclusive territory granted the franchisee by the franchise agreement; or, if no exclusive territory is designated, permitting the franchisor to compete unfairly with the franchisee within a reasonable area.
(3) Allowing substantial modification of the franchise agreement by the franchisor without the consent in writing of the franchisee.
Source: Item 22 — CONTRACTS (FDD page 41)
What This Means (2024 FDD)
According to the 2024 Care Plus Medical Ucc Franchise Disclosure Document, the Indiana Rider to the Franchise and Multi-Unit Development Agreement does not explicitly prohibit arbitration between Care Plus Medical Ucc and the franchisee. Instead, it modifies certain provisions of the agreement to ensure compliance with Indiana Acts.
The Indiana Rider specifically addresses provisions related to exclusive purchasing requirements, franchisor-owned outlets competing with franchisees, and substantial modifications to the franchise agreement, ensuring these aspects comply with Indiana law. These modifications are designed to protect the franchisee's interests within the framework of Indiana's franchise regulations.
While the Indiana Rider modifies certain aspects of the agreement to align with Indiana law, it does not contain any language that explicitly prohibits or restricts the use of arbitration for dispute resolution. Therefore, the standard dispute resolution terms outlined in the franchise agreement, including any provisions for arbitration, would likely still apply unless specifically superseded by the rider's modifications.