What Indiana Code section addresses non-renewal of a Ledgers franchise in bad faith?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
The Indiana Code 23-2-2.7-1 makes it unlawful for a Franchisor to terminate a franchise without good cause or to refuse to renew a franchise on bad faith, as well as providing other protections and rights to the franchisee.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, Indiana Code 23-2-2.7-1 addresses the non-renewal of a franchise in bad faith. Specifically, this section makes it unlawful for Ledgers, as the franchisor, to refuse to renew a franchise in bad faith. This code also provides other protections and rights to the franchisee.
This means that if a Ledgers franchisee operates in Indiana, Ledgers cannot simply choose not to renew the franchise agreement without a legitimate, justifiable reason. The law aims to protect franchisees from unfair or arbitrary decisions by the franchisor that could jeopardize their business.
Prospective Ledgers franchisees in Indiana should be aware of this protection, as it provides a legal basis to challenge a non-renewal decision that appears to be made in bad faith. It is advisable to consult with an attorney to fully understand their rights and options under Indiana law should they face such a situation.