Does the Indiana Rider prohibit a Desi District franchise agreement from providing that the agreement is not renewed?

According to Desi District's 2024 Franchise Disclosure Document, the Indiana Rider does not prohibit a franchise agreement from stating that the agreement is not renewable upon expiration. However, it does state that the franchisor cannot fail to renew a franchise without good cause or in bad faith. The agreement can specify conditions that the franchisee must meet for renewal.

This means that Desi District can choose not to renew a franchise agreement at the end of its term, provided the decision is made in good faith and/or for a valid reason. The franchise agreement can outline specific requirements that a franchisee must satisfy to be eligible for renewal. If these conditions are not met, Desi District may not renew the agreement.

For a prospective Desi District franchisee in Indiana, this highlights the importance of understanding the renewal terms outlined in the franchise agreement. Franchisees should pay close attention to the conditions required for renewal and ensure they can meet those requirements to maintain their franchise. It is also important to understand what constitutes 'good cause' for non-renewal, as this could be a point of contention if Desi District chooses not to renew the agreement.