For Ledgers franchises in Indiana, what does Indiana Code section 23-2-2.7-1(10) prohibit regarding litigation?

According to Ledgers' 2025 Franchise Disclosure Document, Indiana Code section 23-2-2.7-1(10) addresses litigation limitations for franchises operating within Indiana. Specifically, this section prohibits the selection of any exclusive legal forum outside of Indiana for resolving disputes. This means that Ledgers franchisees in Indiana cannot be forced to litigate or arbitrate disputes in another state.

Furthermore, Indiana Code section 23-2-2.7-1(10) also prohibits any contractual limitations on litigation itself. The Indiana Secretary of State interprets this to mean that contract provisions regarding liquidated damages may not be enforceable. Liquidated damages are pre-set amounts designed to compensate one party in the event of a breach of contract by the other party.

For a prospective Ledgers franchisee in Indiana, this means that the franchise agreement cannot force them to accept a specific, non-Indiana venue for dispute resolution. It also suggests that clauses within the Ledgers franchise agreement that stipulate fixed amounts for damages might not be upheld under Indiana law. This offers some protection to the franchisee, ensuring disputes can be addressed within the state and that damage claims are subject to legal scrutiny.