Under Indiana Code, what constitutes unlawful termination of a Casiola franchise?

According to the 2024 Casiola Franchise Disclosure Document, Indiana Code 23-2-2.7-1(7) defines unlawful termination of a Casiola franchise. Specifically, it is unlawful for Casiola to unilaterally terminate a franchise agreement if there isn't a material violation of the agreement by the franchisee. Additionally, the termination must not be done in bad faith. This means Casiola must have a legitimate, justifiable reason based on the franchisee's actions to terminate the agreement.

This Indiana code aims to protect franchisees from arbitrary or unfair termination by Casiola. A "material violation" typically refers to a significant breach of the franchise agreement terms, such as failure to meet performance standards, non-payment of royalties, or violation of brand standards. The "bad faith" clause prevents Casiola from using minor or technical violations as a pretext for termination when the real reason might be something else, such as a desire to take over the franchisee's location.

For a prospective Casiola franchisee in Indiana, this provision offers some security against unwarranted termination. However, it's crucial to understand what constitutes a "material violation" under the franchise agreement and to operate the franchise in compliance with all terms and conditions. Franchisees should also maintain thorough records of their business operations and communications with Casiola to protect themselves in case of a dispute over termination.