What is the purpose of the Indiana Addendum to the Caring Transitions Franchise Agreement?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
INDIANA ADDENDUM TO FRANCHISE AGREEMENT
The Franchise Agreement to which this Addendum is attached is amended as follows to comply with the Indiana Franchise Disclosure Law and the Indiana Deceptive Franchise Practices Law.
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- A general release required as a condition of renewal and/or assignment/transfer shall not apply to any claim or liability arising under the Indiana Franchise Disclosure Law and the Indiana Deceptive Franchise Practices Law.
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- Any provision in this Agreement that requires the application of the laws of another state or designates jurisdiction or venue in a forum outside the State of Indiana is void with respect to a claim otherwise enforceable under the Indiana Franchise Disclosure Law or the Indiana Deceptive Franchise Practices Law.
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- In the event of a conflict of laws, the provisions of the Indiana Franchise Disclosure Law and the Indiana Deceptive Franchise Practices Law shall prevail.
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- Section 10.2 is replaced with the following:
"Franchisee acknowledges that any failure to comply with Section 10.1 of this Agreement will cause Franchisor irreparable injury. Accordingly, Franchisor shall have the right to seek specific performance of, or an injunction against a violation of, the requirements of Section 10.1. Franchisee agrees to pay all court costs and reasonable attorneys' fees incurred by Franchisor in successfully obtaining any such specific performance or injunctive relief."
- Section 15.9 is replaced with the following:
"Franchisee acknowledges that Franchisee's violation of the terms of this Article 15 would result in irreparable injury to Franchisor for which no adequate remedy at law may be available. Accordingly, Franchisor shall have the right to seek specific performance of, or an injunction against a violation of, the requirements of this Article 15. Franchisee agrees to pay all court costs and reasonable attorneys' fees incurred by Franchisor in successfully obtaining any such specific performance or injunctive relief."
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2025 FDD)
According to the 2025 Caring Transitions Franchise Disclosure Document, the Indiana Addendum is designed to ensure the franchise agreement complies with both the Indiana Franchise Disclosure Law and the Indiana Deceptive Franchise Practices Law. This addendum modifies specific sections of the standard franchise agreement to align with Indiana state laws, offering additional protections to franchisees operating in Indiana.
Specifically, the addendum addresses several key areas. It clarifies that any general release required for renewal or transfer of the franchise will not apply to claims arising under Indiana's franchise laws. It also voids any provision in the agreement that mandates the application of laws from another state or designates a jurisdiction outside of Indiana for claims enforceable under Indiana franchise laws. In cases of conflicting laws, the addendum stipulates that Indiana's franchise laws will take precedence.
Furthermore, the Indiana Addendum replaces sections 10.2, 15.9 and 16.1 of the franchise agreement, primarily concerning Caring Transitions's right to seek specific performance or injunctive relief and the franchisee's responsibility for court costs and attorney's fees in certain situations. These modifications ensure that the franchisee's rights under Indiana law are protected, even if the standard franchise agreement contains conflicting terms. This addendum reflects a commitment to compliance with state-specific regulations, providing a more balanced and legally sound agreement for franchisees in Indiana.