Is Item 17(w) of the City Wide Franchise Disclosure Document subject to Indiana law?
City_Wide Franchise · 2025 FDDAnswer from 2025 FDD Document
ITEM 17(w) is amended by the addition of the following language to the original language that appears:
"(subject to Indiana law)"
Source: Item 22 — CONTRACTS (FDD page 65)
What This Means (2025 FDD)
According to City Wide's 2025 Franchise Disclosure Document, Item 17(w) is indeed subject to Indiana law. This means that the provisions within Item 17(w) of the franchise agreement must comply with Indiana's specific franchise laws if a City Wide franchise is located in Indiana.
For a prospective City Wide franchisee in Indiana, this is a beneficial inclusion. Indiana law will take precedence over any conflicting terms in Item 17(w), offering additional protection. This ensures that certain aspects of the franchise agreement, such as choice of law or forum, are interpreted and enforced in accordance with Indiana statutes, which may be more favorable to the franchisee.
Specifically, the FDD states that Indiana law prohibits franchisors from requiring franchisees to prospectively agree to releases, assignments, waivers, or estoppels that relieve any person from liability. It also addresses issues such as termination, renewal, non-compete agreements, and indemnification, ensuring these aspects of the franchise agreement adhere to Indiana law. This can provide a more balanced legal framework for the franchisee-franchisor relationship within Indiana.