What specific Indiana Code section addresses unilateral termination of a Casiola franchise?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
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- Item 17, "Renewal, Termination, Transfer and Dispute Resolution," is supplemented, by the addition of the following:
- A. Indiana Code 23-2-2.7-1(7) makes unlawful unilateral termination of a franchise unless there is a material violation of the Franchise Agreement and termination is not in bad faith.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, Indiana Code 23-2-2.7-1(7) addresses the unilateral termination of a franchise. This code makes it unlawful for Casiola to unilaterally terminate a franchise agreement unless the franchisee has materially violated the agreement and the termination is not made in bad faith.
This Indiana code protects franchisees from arbitrary or unfair termination by Casiola. Casiola must have a legitimate reason, specifically a material violation of the franchise agreement, to terminate the agreement. Furthermore, the termination must be carried out in good faith, meaning Casiola cannot use termination as a means of exploiting the franchisee.
Prospective Casiola franchisees in Indiana should understand this protection. It ensures that their investment and efforts in building the franchise cannot be undone without due cause. However, franchisees must also be aware of their obligations under the franchise agreement to avoid giving Casiola grounds for termination. It is advisable to consult with a legal professional to fully understand the implications of this Indiana code and the franchise agreement.