In Indiana, what happens if any provision of the Fitstop Franchise Agreement conflicts with the Indiana Deceptive Franchise Practices Law?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
FOR THE STATE OF INDIANA
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, the Indiana Deceptive Franchise Practices Law governs the relationship between Fitstop and the franchisee in Indiana. This law forbids certain provisions in the Franchise Agreement and related documents. It also prevents Fitstop from engaging in actions and practices that could be considered coercive or oppressive to the master licensee.
Specifically, if any provision within the Fitstop Franchise Agreement conflicts with the Indiana Deceptive Franchise Practices Law, the law will take precedence and control the situation. This means that the conflicting part of the Franchise Agreement will be superseded by the stipulations of the Indiana law.
Furthermore, any requirement for 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. The Franchise Agreement states that lawsuits must be brought in California, but this provision may not be enforceable under Indiana law, and Indiana franchise laws will govern the Franchise Agreement and all related documents.