Are there any circumstances under which a Ledgers franchisee in Indiana would be required to execute a release upon termination?

According to Ledgers' 2025 Franchise Disclosure Document, a franchisee in Indiana is not required to execute a release upon termination of the franchise agreement. The FDD specifies that any requirement for a franchisee in Indiana to sign a release upon termination is discretionary, not mandatory. However, the franchisee is still obligated to execute all other documents necessary to fully rescind all agreements between the parties. This amendment is in compliance with Indiana Code 23-2-2.7-1(5).

This means that while Ledgers cannot force an Indiana franchisee to sign a general release at the end of the franchise term, they can require the franchisee to sign other documents needed to formally end the business relationship and dissolve any existing agreements. These documents would likely cover items such as confirming the return of confidential information, transferring phone numbers if requested, and acknowledging the termination of the franchise agreement.

For a prospective Ledgers franchisee in Indiana, this provides some protection against being forced into waiving rights or claims against the franchisor as a condition of termination. However, it's important to understand what other documents Ledgers will require to be signed upon termination and to review those documents carefully with legal counsel. The franchisee should be aware of all obligations and ensure they are fulfilling all necessary requirements to properly conclude the franchise agreement.