In Indiana, can the Ledgers Franchise Agreement mandate an exclusive forum outside of Indiana?

According to the 2025 Ledgers Franchise Disclosure Document, the Franchise Agreement cannot mandate an exclusive forum outside of Indiana for franchisees operating within the state. Specifically, Indiana Code section 23-2-2.7-1(10) prohibits the choice of an exclusive forum other than Indiana. This means that any legal disputes arising from the franchise agreement must be resolved within the state of Indiana, providing a local venue for Indiana franchisees.

This provision is designed to protect Indiana franchisees from having to travel to a different state to resolve legal issues, which could be costly and inconvenient. It ensures that Indiana law and the Indiana court system will govern any disputes, offering a level of familiarity and protection to the franchisee. This is a significant benefit for prospective franchisees in Indiana, as it limits the potential financial and logistical burdens of legal action.

Furthermore, the FDD states that Indiana Code sections 23-2-2.5 and 23-2-2.7 supersede the choice of law clauses in the Franchise Agreement. This reinforces the fact that Indiana law takes precedence over any conflicting provisions in the agreement, ensuring that franchisees' rights under Indiana law are protected. This addendum to the franchise agreement provides additional security and clarity for franchisees operating in Indiana.