What Indiana Code section prohibits the unilateral termination of an Itan franchise without good cause or in bad faith?

According to Itan's 2025 Franchise Disclosure Document, Indiana Code § 23-2-2.7-1(7) prohibits the unilateral termination of an Itan franchise without good cause or in bad faith. The FDD specifies that "good cause" is defined as a material breach of the Franchise Agreement or Supplemental Agreement. This means Itan cannot terminate a franchise agreement in Indiana without a legitimate reason, such as the franchisee violating the terms of the agreement.

This provision protects Itan franchisees in Indiana from arbitrary or unfair termination. It ensures that Itan must have a valid and justifiable reason, based on a material breach of the agreement, before ending the franchise relationship. This offers a level of security and stability for franchisees operating in Indiana.

It is important for prospective Itan franchisees in Indiana to understand what constitutes a "material breach" as defined in the Franchise Agreement and Supplemental Agreements. This knowledge will help them avoid actions that could lead to termination and to understand their rights if Itan attempts to terminate the agreement. Franchisees should also be aware of the specific procedures Itan must follow before terminating an agreement, including providing written notice and an opportunity to cure the breach.