If any provision of the Fitstop Franchise Agreement conflicts with the Indiana Deceptive Franchise Practices Law, which law will control?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
Item 17 of the Disclosure Document is supplemented by the following:
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- The Indiana Deceptive Franchise Practices Law (Indiana Code 23-2-2.7 et seq.) in general governs the relationship between the franchisor and the franchisee by forbidding certain provisions in the Franchise Agreement and related documents and by preventing the franchisor from engaging in certain acts and practices which could be considered coercive or oppressive to the master licensee.
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- If any of the provisions of the Franchise Agreement conflict with this law, this law will control.
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- Any provisions requiring you to sign a general release of claims against us, including upon execution of the Franchise Agreement or a successor Franchise Agreement or transfer, does not release any claim you may have under the Indiana Deceptive Franchise Practices Law.
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- The Franchise Agreement provides that suit must be brought in California. These provisions may not be enforceable under Indiana law. Indiana franchise laws will govern the Franchise Agreement and any and all other related documents.
Source: Item 23 — RECEIPTS (FDD pages 50–135)
What This Means (2024 FDD)
According to Fitstop's 2024 Franchise Disclosure Document, for franchisees operating in Indiana, the Indiana Deceptive Franchise Practices Law will take precedence over any conflicting provisions within the Fitstop Franchise Agreement. This means that if any term in the agreement clashes with the protections and regulations provided by Indiana law, the state law will govern the relationship between Fitstop and the franchisee.
This protection extends to releases of claims. Any provision requiring a franchisee to sign a general release of claims against Fitstop does not release any claim the franchisee may have under the Indiana Deceptive Franchise Practices Law. This ensures that franchisees retain their rights under Indiana law, even when signing agreements or releases related to the franchise.
Furthermore, while the Fitstop Franchise Agreement may stipulate that lawsuits must be brought in California, this provision may not be enforceable under Indiana law. Indiana franchise laws will govern the Franchise Agreement and any and all other related documents. This means that Indiana franchisees may have the right to pursue legal action in Indiana, regardless of what the franchise agreement states about jurisdiction.