What phrase replaces 'is entitled' to injunctive relief in the Ledgers Franchise Agreement for Indiana?
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, the phrase "is entitled" to injunctive relief is replaced with the words "may seek." This modification is in compliance with Indiana Code 23-2-2.7-1(10). This code addresses concerns about franchisors potentially limiting litigation rights of franchisees.
This means that while the standard Ledgers franchise agreement might imply an automatic right to injunctive relief for the franchisor, Indiana law modifies this to clarify that Ledgers "may seek" such relief, making it subject to court approval. Injunctive relief typically refers to a court order that requires a party to do or cease doing a specific action. In the context of a franchise agreement, this might involve preventing a franchisee from violating the terms of the agreement, such as operating a competing business during the term of the agreement or misusing confidential information.
For a prospective Ledgers franchisee in Indiana, this change provides a degree of protection. It ensures that Ledgers cannot automatically obtain an injunction against them without first demonstrating to a court that such relief is warranted. This modification aligns the franchise agreement with Indiana law, which aims to protect franchisees from overly restrictive or one-sided contract terms. Franchisees should be aware of this modification and understand that any request for injunctive relief from Ledgers will be subject to judicial review under Indiana law.