factual

For Ledgers franchises in Indiana, what specific wording regarding injunctive relief is deleted and replaced in the Franchise Agreement?

Ledgers Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. In compliance with Indiana Code 23-2-2.7-1(10), any inference contained in the Franchise Agreement to the effect that the Franchisor "is entitled" to injunctive relief shall, when applicable to a Franchise Agreement executed in and operative within the State of Indiana, is hereby deleted, understood to mean and replace the words "may seek."

Source: Item 22 — CONTRACTS (FDD page 46)

What This Means (2025 FDD)

According to Ledgers' 2025 Franchise Disclosure Document, for franchise agreements executed and operative within the state of Indiana, any inference that Ledgers "is entitled" to injunctive relief is deleted. This wording is then replaced with "may seek." This change is made to comply with Indiana Code 23-2-2.7-1(10).

In practical terms, this means that while Ledgers may pursue injunctive relief against a franchisee in Indiana, the Franchise Agreement cannot state or imply that Ledgers is automatically entitled to it. Injunctive relief is a court order that requires a party to do or cease doing a specific action. In the context of a franchise agreement, Ledgers might seek an injunction to prevent a franchisee from violating the terms of the agreement, such as operating a competing business during the term of the agreement or misusing Ledgers' trademarks.

The modification ensures that Indiana franchisees are not subject to a contractual term that automatically grants injunctive relief to Ledgers. Instead, Ledgers must demonstrate to a court that injunctive relief is warranted under the specific circumstances. This provides a layer of protection for franchisees, as it prevents Ledgers from obtaining an injunction without judicial review. This type of modification is not uncommon, as many states have franchise laws that aim to balance the rights and obligations of franchisors and franchisees.

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.