In Indiana, what constitutes 'good cause' for Degree Wellness to terminate a franchise agreement?

According to Degree Wellness's 2025 Franchise Disclosure Document, Indiana law dictates the conditions under which Degree Wellness can terminate a franchise agreement. Specifically, Indiana Code (IC) section 23-2-2.7-1(7) prohibits Degree Wellness from unilaterally terminating a franchise without 'good cause' or in bad faith. The FDD clarifies that 'good cause' includes any material violation of the Franchise Agreement.

This means that Degree Wellness can only terminate a franchise agreement in Indiana if the franchisee has significantly breached the terms outlined in the agreement. This provision protects franchisees from arbitrary or unfair termination by ensuring that there must be a legitimate and substantial reason for ending the franchise relationship.

For a prospective Degree Wellness franchisee in Indiana, this information is crucial. It provides a degree of security, knowing that the franchise cannot be terminated without a valid reason as defined by Indiana law. However, it also underscores the importance of fully understanding and adhering to the Franchise Agreement to avoid any actions that could be construed as a material violation, potentially leading to termination.