Regarding the Caring Transitions franchise agreement, are provisions requiring the application of non-Indiana laws or designating non-Indiana jurisdiction enforceable for claims under Indiana franchise laws?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
Any provision in the franchise agreement or franchise development 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.
In the event of a conflict of laws, the provisions of the Indiana Franchise Disclosure Law and the Indiana Deceptive Franchise Practices Law will prevail.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, any part of the franchise agreement that demands the application of laws from a state other than Indiana, or that designates jurisdiction or venue in a location outside of Indiana, is considered void. This specifically applies to any claim that would otherwise be enforceable under the Indiana Franchise Disclosure Law or the Indiana Deceptive Franchise Practices Law.
This provision is reinforced by the Indiana Addendum to the Franchise Agreement, which explicitly states that any clause requiring the application of non-Indiana laws or designating out-of-state jurisdiction is void concerning claims enforceable under Indiana franchise laws. Furthermore, in the event of any conflict between laws, the Indiana Franchise Disclosure Law and the Indiana Deceptive Franchise Practices Law will take precedence.
For a prospective Caring Transitions franchisee in Indiana, this means that their rights under Indiana franchise laws are protected, and they cannot be forced to resolve disputes in another state or under different state laws. This ensures that Indiana franchisees have the benefit of their local state laws and legal system when dealing with issues related to their franchise agreement. This protection is typical in franchise law, as many states have specific statutes to protect franchisees within their jurisdiction.