Under what conditions can Kidokinetics unilaterally terminate a Kidokinetics Franchise Agreement in Indiana?

According to the 2024 Kidokinetics Franchise Disclosure Document, Indiana law places specific restrictions on Kidokinetics's ability to unilaterally terminate a franchise agreement within the state. Specifically, Indiana Code 23-2-2.7-1(7) states that Kidokinetics can only terminate a franchise agreement if there is a material violation of the agreement by the franchisee, and the termination must not be done in bad faith. This means Kidokinetics cannot simply end the agreement without a significant breach by the franchisee.

This protection for franchisees in Indiana is more robust than in some other states, where franchisors may have broader latitude to terminate agreements. The definition of 'good cause' for termination under Indiana law includes any material breach of the Franchise Agreement. This means that the reasons for termination must be substantial and directly related to the franchisee's failure to uphold their obligations under the agreement.

Furthermore, the FDD clarifies that Indiana law supersedes any conflicting provisions in the standard Franchise Agreement. This ensures that the protections afforded to franchisees under Indiana law are upheld, regardless of what the standard Kidokinetics agreement might state. This modification is crucial for prospective franchisees in Indiana to understand their rights and protections under state law, especially concerning termination of the franchise agreement.