What specific rights under Indiana Statutes do Extreme Art Studio franchisees not waive?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
Notwithstanding anything to the contrary in this provision, you do not waive any right under the Indiana Statutes with regard to prior representations made by us.
Despite anything to the contrary in the Franchise Agreement, the following provisions will supersede and apply to all Franchises offered and sold in the State of Indiana:
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- The laws of the State of Indiana supersede any provisions of the FDD, the Franchise Agreement, or Franchisor's Choice of Law State law, if such provisions are in conflict with Indiana law.
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- The prohibition by Indiana Code 23-2-2.7-1(7) against unilateral termination of the Franchise without good cause or in bad faith, good cause being defined under law as including any material breach of the Franchise Agreement, will supersede the provisions of the Franchise Agreement relating to termination for cause, to the extent those provisions may be inconsistent with such prohibition.
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- Any provision in the Franchise Agreement that would require you to prospectively assent to a release, assignment, novation, waiver or estoppel which purports to relieve any person from liability imposed by the Indiana Deceptive Franchise Practices Law is void to the extent that such provision violates such law.
Source: Item 23 — RECEIPTS (FDD pages 49–214)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, Indiana franchisees retain specific rights under Indiana Statutes that cannot be waived. Specifically, franchisees do not waive rights regarding prior representations made by Extreme Art Studio. This means that any claims related to misrepresentations made by the franchisor before the franchise agreement are still actionable under Indiana law. This protection ensures that franchisees can hold Extreme Art Studio accountable for statements made during the initial sales process.
Additionally, Indiana law supersedes any conflicting provisions in the Franchise Agreement or the franchisor's choice of law. This means that if any part of the agreement contradicts Indiana law, Indiana law will take precedence. Extreme Art Studio cannot unilaterally terminate a franchise without good cause or in bad faith, where good cause includes a material breach of the Franchise Agreement. This protects franchisees from arbitrary termination.
Furthermore, any agreement requiring a franchisee to prospectively release Extreme Art Studio from liability imposed by the Indiana Deceptive Franchise Practices Law is void. This prevents Extreme Art Studio from using waivers to avoid responsibility for deceptive practices. These stipulations collectively strengthen the franchisee's position by ensuring adherence to Indiana's franchise-specific regulations and preventing overreaching contractual terms by the franchisor.