For Ledgers franchises in Indiana, what is the prohibited action regarding the choice of an exclusive forum?

According to Ledgers' 2025 Franchise Disclosure Document, Indiana law prohibits franchise agreements from requiring that litigation be limited to a forum outside of Indiana. This means that Ledgers cannot force a franchisee in Indiana to resolve disputes in a specific court or location that is not within the state.

This protection is in place because Indiana Code section 23-2-2.7-1(10) explicitly disallows the choice of an exclusive forum other than Indiana. The Indiana Secretary of State enforces this provision to ensure that franchisees are not unduly burdened by having to pursue legal action in a distant or inconvenient location.

For a prospective Ledgers franchisee in Indiana, this is a beneficial provision. It ensures that if a legal dispute arises with Ledgers, the franchisee can pursue legal remedies within their own state, potentially reducing costs and logistical challenges associated with out-of-state litigation. This promotes a fairer legal environment for franchisees operating in Indiana.