What constitutes 'good cause' for termination of a Kidokinetics franchise under Indiana law?

According to Kidokinetics's 2024 Franchise Disclosure Document, Indiana law impacts franchise terminations. Specifically, Indiana Code 23-2-2.7-1(7) addresses the termination of a Kidokinetics franchise agreement. This statute prevents Kidokinetics from unilaterally terminating a franchise without 'good cause' or in bad faith. The FDD states that 'good cause' under Indiana law includes any material breach of the Franchise Agreement. This definition of good cause supersedes any conflicting termination provisions in the standard Franchise Agreement.

For a prospective Kidokinetics franchisee in Indiana, this means that the franchise agreement cannot be terminated without a significant violation of the agreement's terms. This provides a degree of protection against arbitrary termination by Kidokinetics. The Indiana Deceptive Franchise Practices Law further protects franchisees by voiding any provisions that require a franchisee to prospectively waive liability imposed by that law.

It is important for potential Kidokinetics franchisees in Indiana to carefully review the Franchise Agreement to understand what constitutes a 'material breach.' Franchisees should also be aware that Indiana law will govern disputes covered by Indiana franchise laws, while the Franchisor's Choice of Law State law applies otherwise. This ensures that franchisees in Indiana have certain statutory rights that cannot be waived or superseded by conflicting terms in the franchise agreement.