How is the phrase 'is entitled' to injunctive relief modified in the Ledgers Franchise Agreement for Indiana franchisees?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 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 the 2025 Ledgers Franchise Disclosure Document, for franchise agreements executed in and operative within the state of Indiana, any inference that Ledgers "is entitled" to injunctive relief is modified. Specifically, the phrase "is entitled" is deleted and replaced with the words "may seek." This modification is in compliance with Indiana Code 23-2-2.7-1(10).
In practical terms, this means that while the standard Ledgers franchise agreement might suggest an automatic right to injunctive relief for the franchisor, Indiana law requires a more nuanced approach. Instead of being automatically entitled to an injunction, Ledgers must demonstrate to a court that injunctive relief is appropriate under the specific circumstances.
This change protects Indiana franchisees by ensuring that Ledgers cannot simply demand an injunction without judicial oversight. A court must determine whether an injunction is warranted, considering factors such as the potential harm to Ledgers if the injunction is not granted and the potential harm to the franchisee if it is. This modification aligns with Indiana's franchise laws, which aim to provide certain protections and rights to franchisees operating within the state.