For Carvel franchises offered and sold in Indiana, does the Franchise Agreement provision relieving both parties from liability for punitive damages apply?

According to Carvel's 2025 Franchise Disclosure Document, the standard Franchise Agreement provision relieving both parties from liability for punitive damages will not apply to franchises offered and sold in the State of Indiana. This means that, unlike in some other states, an Indiana Carvel franchisee retains the right to seek punitive damages, and Carvel cannot enforce a clause preventing such claims.

This modification is outlined in the Indiana Addendum to the Franchise Agreement, which specifically addresses how Indiana law interacts with the standard Carvel franchise terms. This addendum acknowledges the Indiana Deceptive Franchise Practices Law and the Indiana Franchise Disclosure Law, ensuring that the franchise agreement adheres to Indiana's specific regulations.

For a prospective Carvel franchisee in Indiana, this is a beneficial provision. It means that in cases of serious misconduct or negligence on the part of Carvel, the franchisee has the legal recourse to pursue punitive damages, which are intended to punish the wrongdoer and deter similar behavior in the future. This protection aligns with Indiana's franchise laws, which aim to provide a fair balance of rights and responsibilities between the franchisor and franchisee.