Can Crave Cookies require a franchisee to prospectively assent to a release that relieves any person from liability imposed by the Indiana Deceptive Franchise Practices Act?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
- (5) Requiring the franchisee to prospectively assent to a release, assignment, novation, waiver, or estoppel which purports to relieve any person from liability to be imposed by the Indiana Deceptive Franchise Practices Act or requiring any controversy between the franchisee and the franchisor to be referred to any person, if referral would be binding on the franchisee.
This subsection (5) does not apply to mediation before an independent mediator.
Source: Item 23 — RECEIPTS (FDD pages 47–194)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, the franchise agreement cannot require a franchisee to prospectively assent to a release that relieves any person from liability imposed by the Indiana Deceptive Franchise Practices Act.
Specifically, the FDD states that the franchise agreement cannot require the franchisee to prospectively assent to a release, assignment, novation, waiver, or estoppel that relieves any person from liability imposed by the Indiana Deceptive Franchise Practices Act. It also specifies that the franchise agreement cannot require any controversy between the franchisee and Crave Cookies to be referred to any person if the referral would be binding on the franchisee.
This protection for franchisees does not apply to mediation before an independent mediator. This means that while Crave Cookies cannot force a franchisee to waive their rights under the Indiana Deceptive Franchise Practices Act through a release or binding referral, the franchisee can still agree to mediate disputes with Crave Cookies through an independent mediator.