Is an Indiana Dryject franchisee required to sign a general release of claims as a condition of renewing or transferring the franchise?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT FOR STATE OF INDIANA
Amendment to Item 17 of the FDD:
Item 17 of the Disclosure Document, Sections (u), (v), and (w), is amended to omit any reference to selection of an out-of-Indiana forum or choice of law.
The franchise agreement requires application of the laws of Pennsylvania. This provision is deleted from the Indiana Franchise Agreement.
The franchise agreement requires you to sign a general release of claims as a condition of renewing or transferring the franchise. Under the law of Indiana any provision that purports to bind a person acquiring a franchise to waive compliance with the franchise laws of Indiana is void. Item 17 of the Disclosure Document, Sections (c) (renewal) and (m) (transfer), is amended to omit the requirements that an Indiana Franchisee sign a general release of claims as a condition of renewal or transfer. This will not prevent Franchisor from requiring you to sign a general release of claims as part of a settlement of a dispute.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, an Indiana franchisee is generally not required to sign a general release of claims as a condition of renewing or transferring their franchise. The FDD includes an addendum specific to Indiana that amends Item 17 of the disclosure document, which typically outlines the terms for renewal and transfer.
Specifically, the addendum states that any provision in the franchise agreement that would require an Indiana franchisee to waive compliance with Indiana franchise laws is void. To that end, the requirement to sign a general release of claims upon renewal or transfer is omitted for Indiana franchisees. This means that Dryject franchisees in Indiana will not be forced to relinquish their rights under Indiana franchise law simply to renew their agreement or transfer their franchise to someone else.
However, it's important to note that this protection does not prevent Dryject from requiring a franchisee to sign a general release of claims as part of settling a specific dispute. This exception allows Dryject to resolve conflicts with franchisees through negotiated settlements that may include a release of claims, but it cannot be a blanket requirement for all renewals or transfers.