For City Publications franchises in Indiana, what is the impact of Indiana Code 23-2-2.7-1(5) on the release of claims?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
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- ITEM 17 of the Disclosure Document is amended to add the following:
- ◼ 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.
- ◼ Indiana Code 23-2-2.7-1(5) prohibits a prospective general release of claims subject to the Indiana Deceptive Franchise Practices Law.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, Indiana Code 23-2-2.7-1(5) directly impacts the release of claims for franchisees in Indiana. This statute prohibits a prospective general release of claims that are subject to the Indiana Deceptive Franchise Practices Law. In simpler terms, City Publications cannot require a franchisee to sign away their rights to sue under this specific Indiana law before a dispute even arises.
This protection is significant for prospective City Publications franchisees in Indiana because it ensures they retain the ability to pursue legal action if they believe City Publications has engaged in deceptive practices as defined by Indiana law. This prevents City Publications from using a blanket release to shield themselves from potential liability related to such practices.
Item 17 of the City Publications Disclosure Document is amended to reflect this Indiana law. This means that the standard franchise agreement is modified for Indiana franchisees to comply with this legal requirement. Franchisees should carefully review Item 17 and any related addenda to fully understand their rights and obligations under Indiana law.