In Indiana, can Degree Wellness require a franchisee to prospectively assent to a release that would relieve a person from liability imposed by the Indiana Franchise Act?

According to Degree Wellness's 2025 Franchise Disclosure Document, Indiana law protects franchisees from certain overreaching provisions. 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 any person from liability imposed by the Indiana Franchise Act. This means Degree Wellness cannot include clauses in its franchise agreement that force franchisees to waive their rights or release the company from obligations under Indiana franchise law before any claim arises.

This protection ensures that franchisees in Indiana retain their legal rights and remedies under the Indiana Franchise Act. It prevents Degree Wellness from using its potentially stronger bargaining position to force franchisees into unfair agreements that limit their ability to seek legal recourse in the future. The Indiana Franchise Act aims to create a more balanced relationship between franchisors and franchisees, and this provision is a key component of that effort.

For a prospective Degree Wellness franchisee in Indiana, this means they cannot be compelled to sign away their rights under the Indiana Franchise Act as a condition of obtaining or maintaining the franchise. They should carefully review the franchise agreement and be aware of this protection. If the agreement contains any language that appears to violate this provision, they should seek legal advice. This safeguard helps ensure a fairer franchising environment for Degree Wellness franchisees operating in Indiana.