Does the Indiana Franchise Act prohibit Degree Wellness from requiring franchisees to prospectively agree to a release that would relieve a person from liability?

According to Degree Wellness's 2025 Franchise Disclosure Document, the Indiana Franchise Act includes provisions that protect franchisees. Specifically, Indiana Code Section 23-2-2.7-1(5) prohibits Degree Wellness from requiring a franchisee to prospectively agree to a release, assignment, novation, waiver, or estoppel that would relieve a person from liability imposed by the Indiana Franchise Act. This protection applies if the franchisee is a resident of Indiana or a non-resident who will operate a franchise in Indiana.

This means that Degree Wellness cannot include clauses in its franchise agreement that force franchisees to waive their rights or release the company from liabilities arising from violations of the Indiana Franchise Act. This provision ensures that franchisees retain their legal recourse under Indiana law and are not compelled to forfeit these rights as a condition of the franchise agreement.

For a prospective Degree Wellness franchisee in Indiana, this is a significant safeguard. It prevents Degree Wellness from using the franchise agreement to shield itself from accountability under Indiana franchise law. Franchisees should still seek legal counsel to fully understand their rights and obligations under the franchise agreement and Indiana law, but this provision offers a baseline level of protection.