factual

For Ledgers franchises in Indiana, can a franchisee's right to institute a civil action within Indiana be abridged by the franchise agreement?

Ledgers Franchise · 2025 FDD

Answer from 2025 FDD Document

Any agreement executed in and operative within the State of Indiana shall be governed by applicable Indiana franchise laws and the right of any Franchisee to institute a civil action or initiate arbitral proceedings within the State of Indiana shall not be deemed to have been abridged in any form or manner by any provisions contained in this Agreement.

Source: Item 22 — CONTRACTS (FDD page 46)

What This Means (2025 FDD)

According to Ledgers' 2025 Franchise Disclosure Document, for franchise agreements executed in and operative within the state of Indiana, the franchisee's right to institute a civil action or initiate arbitral proceedings within Indiana cannot be abridged by any provisions contained in the Franchise Agreement. This means that Ledgers franchisees in Indiana retain their legal rights to pursue civil actions or arbitral proceedings within the state, and the franchise agreement cannot contain clauses that restrict or limit these rights.

This protection is further reinforced by Indiana Code section 23-2-2.7-1, which makes it unlawful for Ledgers to terminate a franchise without good cause or refuse to renew a franchise in bad faith. This statute provides additional protections and rights to the franchisee, ensuring fair treatment and adherence to Indiana franchise laws.

Additionally, Indiana Code section 23-2.2.7-1(10) prohibits the choice of an exclusive forum other than Indiana, meaning that any legal disputes must be resolved within the state. This prevents Ledgers from requiring franchisees to litigate in a different jurisdiction, which could be more costly and inconvenient for the franchisee. These provisions collectively aim to protect the interests and legal rights of Ledgers franchisees operating within Indiana.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.