What specific Indiana code prohibits Kidokinetics from requiring a prospective general release of claims?

According to Kidokinetics's 2024 Franchise Disclosure Document, Indiana Code 23-2-2.7-1(5) specifically prohibits Kidokinetics from requiring a franchisee to agree to a prospective general release of claims. This protection applies because these claims are subject to the Indiana Deceptive Franchise Practices Act. This means that Kidokinetics cannot include any clause in its franchise agreement that forces a franchisee to waive their rights to sue or make claims against the company under this Act before any dispute has actually arisen.

This provision is significant for prospective Kidokinetics franchisees in Indiana as it ensures they retain their legal rights and protections under the Indiana Deceptive Franchise Practices Act. It prevents Kidokinetics from using the franchise agreement to shield itself from potential liability for deceptive practices. This protection is particularly important in the context of franchising, where there can be a power imbalance between the franchisor and franchisee.

Furthermore, the FDD clarifies that any provision in the Franchise Agreement that requires a franchisee to prospectively assent to a release, assignment, novation, waiver, or estoppel, which would relieve any person from liability imposed by the Indiana Deceptive Franchise Practices Law, is considered void to the extent that it violates such law. This reinforces the protection afforded to franchisees and ensures that Kidokinetics must adhere to Indiana law in its dealings with its franchisees in the state.

In summary, this Indiana-specific addendum to the Kidokinetics franchise agreement provides an important safeguard for franchisees, ensuring they cannot be compelled to give up their legal rights under the Indiana Deceptive Franchise Practices Act through a general release of claims.