For Fat Shack franchisees in Indiana, do releases executed in connection with the Franchise Agreement apply to claims arising under the Indiana Franchise Disclosure Law and the Indiana Deceptive Franchise Practices Act?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
NA RIDER TO THE FRANCHISE AGREEMENT
The following modifications are made to the Franchise Agreement only to the extent required by the Indiana Franchises Act, IND. CODE § 23-2-2.5, and the Indiana Deceptive Franchise Practices Act, IND. CODE § 23-2-2.7:
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- The following language is added to Sections 3.2 and 3.5:
- Indiana law prohibits FSI from establishing a FSI-owned outlet engaged in a substantially identical business within Franchisee's Protected Territory.
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Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to Fat Shack's 2025 Franchise Disclosure Document, for franchisees in Indiana, any release executed in connection with the Franchise Agreement will not apply to claims arising under the Indiana Franchise Disclosure Law and the Indiana Deceptive Franchise Practices Act. This means that an Indiana Fat Shack franchisee does not waive their rights to sue Fat Shack under these Indiana laws, even if they sign a release as part of the franchise agreement.
This protection is specifically included to comply with Indiana law, ensuring that franchisees retain their legal rights under the Indiana Franchise Disclosure Law and the Indiana Deceptive Franchise Practices Act. This addendum modifies sections of the standard franchise agreement to reflect these legal requirements.
This is a beneficial provision for prospective Fat Shack franchisees in Indiana, as it ensures they retain the ability to pursue legal claims under specific state laws, regardless of any general releases they may sign. Franchisees should consult with a legal professional to fully understand their rights and obligations under the franchise agreement and applicable state laws.