What specific Indiana code prohibits Kidokinetics from unilaterally terminating a franchise agreement without material violation and good faith?

According to Kidokinetics's 2024 Franchise Disclosure Document, Indiana Code 23-2-2.7-1(7) prohibits Kidokinetics from unilaterally terminating a franchise agreement unless there is a material violation of the agreement and the termination is not in bad faith. This Indiana code supersedes any conflicting provisions in the franchise agreement.

This means that Kidokinetics franchisees in Indiana have additional protection against termination compared to franchisees in other states or under the standard terms of the franchise agreement. Kidokinetics must have a legitimate reason, specifically a material breach of the agreement, to terminate the franchise. Furthermore, the termination must be carried out in good faith, meaning Kidokinetics cannot act maliciously or arbitrarily.

This protection is a significant benefit for prospective Kidokinetics franchisees in Indiana, as it reduces the risk of losing their franchise due to minor infractions or unfair practices by Kidokinetics. It ensures that the franchise relationship is based on a foundation of fairness and mutual respect, with both parties obligated to act in good faith.