For Itan franchises in Indiana, what happens to any provision in the Franchise Agreement that designates jurisdiction or venue outside of Indiana?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
In recognition of the requirements of the Indiana Franchise Disclosure Law, IC 23-2-2-2.5, the Franchise Agreement and Supplemental Agreements are amended as follows:
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- Any provision in the Franchise Agreement which designates jurisdiction or venue, or requires the franchisee to agree to jurisdiction or venue, in a forum outside of Indiana, is deleted from any Franchise Agreement and Supplemental Agreement issued in the State of Indiana.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, specific modifications are made to the franchise agreement for franchisees in Indiana. These modifications are in place to ensure compliance with the Indiana Franchise Disclosure Law, IC 23-2-2-2.5. One key change pertains to legal jurisdiction and venue.
Specifically, any clause within the Itan Franchise Agreement that mandates jurisdiction or venue in a location outside of Indiana is rendered void and deleted. This means that if a dispute arises between Itan and an Indiana-based franchisee, the legal proceedings must occur within the state of Indiana, providing a more convenient and potentially less expensive legal process for the franchisee.
This modification is significant for prospective Itan franchisees in Indiana as it protects them from having to travel to another state to resolve legal disputes with the franchisor. It ensures that Indiana law and Indiana courts will govern the resolution of any conflicts, which can provide a level of comfort and familiarity for the franchisee.