To what extent is each provision of the Chick Fil A Franchise Agreement amendment effective, concerning the jurisdictional requirements of the Indiana Franchise Disclosure Law and the Indiana Deceptive Franchise Practice Act?

According to Chick Fil A's 2025 Franchise Disclosure Document, an addendum is included to address the requirements of Indiana franchise laws. Specifically, each provision within this addendum is effective only if the jurisdictional requirements of the Indiana Franchise Disclosure Law and the Indiana Deceptive Franchise Practices Act are independently met, without relying on the addendum itself. This means that the amendments to the franchise agreement, lease, and any related agreements are only valid in Indiana if they comply with Indiana law regardless of the addendum.

This conditionality has significant implications for prospective Chick Fil A franchisees in Indiana. It ensures that Chick Fil A cannot use the addendum to circumvent Indiana's franchise laws. For example, changes related to litigation forums, choice of law, or waivers of claims are only enforceable if they already align with Indiana's legal requirements. This protects franchisees from potentially unfavorable terms that might otherwise be imposed through standard franchise agreements.

Furthermore, the FDD states that the requirement for litigation to be conducted outside of Indiana may be unenforceable under the Indiana Deceptive Franchise Practices Act. The FDD also states that Indiana law governs any action arising under the Indiana Franchise Disclosure Law or the Indiana Deceptive Franchise Practices Act. This reinforces the franchisee's rights under Indiana law, ensuring that disputes can be resolved within the state and under its legal framework. Chick Fil A franchisees should consult with a legal professional to fully understand their rights and obligations under Indiana law, as well as the specific implications of these amendments to the franchise agreement.