How is 'good cause' defined in relation to the termination of an Itan franchise in Indiana?

According to Itan's 2025 Franchise Disclosure Document, Indiana law supersedes the franchise agreement regarding termination. Specifically, Indiana Code § 23-2-2.7-1(7) prohibits the unilateral termination of a franchise by Itan without 'good cause' or in bad faith. In Indiana, 'good cause' is explicitly defined as a material breach of the Franchise Agreement or Supplemental Agreement. This definition overrides any inconsistent provisions in the standard Itan Franchise Agreement within the state of Indiana.

For a prospective Itan franchisee in Indiana, this means that Itan can only terminate the franchise agreement if the franchisee materially breaches the agreement. A material breach would typically involve a significant violation of the terms, such as failure to pay royalties, failure to maintain brand standards, or other serious contractual violations. The Indiana law provides a level of protection to the franchisee against arbitrary termination by Itan.

This protection is significant because it ensures that Itan must have a legitimate and substantial reason to terminate the franchise agreement. It prevents Itan from terminating the agreement based on minor or trivial infractions. The franchisee has recourse under Indiana law if they believe Itan has terminated the agreement without good cause or in bad faith. This provision offers more security to franchisees operating in Indiana compared to states where the definition of 'good cause' may be broader or less clearly defined.