What Indiana law generally governs the relationship between Fitstop and its franchisees?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
FOR THE STATE OF INDIANA
Item 17 of the Disclosure Document is supplemented by the following:
-
- 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.
-
- If any of the provisions of the Franchise Agreement conflict with this law, this law will control.
-
- 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.
-
- 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 (Indiana Code 23-2-2.7 et seq.) generally governs the relationship between Fitstop and its franchisees. This law influences the franchise agreement by forbidding certain provisions and preventing Fitstop from engaging in coercive or oppressive acts toward the franchisee.
Specifically, if any part of the Fitstop Franchise Agreement conflicts with the Indiana Deceptive Franchise Practices Law, the state law will take precedence. Furthermore, any requirement for a franchisee to sign a general release of claims against Fitstop does not release claims under this Indiana law.
While the Fitstop agreement may state that lawsuits must be brought in California, this provision might not be enforceable under Indiana law, which could allow Indiana franchise laws to govern the agreement and related documents. Prospective franchisees in Indiana should be aware of these stipulations and consult with legal counsel to understand their rights under Indiana law.