Where will arbitration between a Monicals Pizza franchisee and franchisor be conducted if the franchise is in Indiana?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
- ITEM 17 of the Disclosure Document is amended to add the following:
- Indiana Code 23-2-2.7-1(7) makes unlawful unilateral termination of a franchise unless there is a material violation of the Franchise Agreement and termination is not in bad faith.
- Indiana Code 23-2-2.7-1(5) prohibits a prospective general release of claims subject to the Indiana Deceptive Franchise Practices Law.
- ITEM 17(r) is amended subject to Indiana Code 23-2-2.7-1(9) to provide that the post-term non-competition covenant shall have a geographical limitation of the territory granted to Franchisee.
- ITEM 17(u) is amended to provide that arbitration between a franchisee and franchisor will be conducted in Indiana or a site mutually agreed upon.
- ITEM 17(v) is amended to provide that Franchisees will be permitted to commence litigation in Indiana for any cause of action under Indiana Law.
- ITEM 17(w) is amended to provide that in the event of a conflict of law, Indiana Law governs any cause of action that arises under the Indiana Disclosure Law or the Indiana Deceptive Franchise Practices Act.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, if a franchisee operates in Indiana, arbitration between the franchisee and Monicals Pizza will be conducted in Indiana or at a site mutually agreed upon by both parties. This amendment to Item 17 of the disclosure document is specifically for franchisees in Indiana, ensuring that the arbitration process occurs within the state unless both parties consent to an alternative location.
This stipulation is in place due to the Indiana Deceptive Franchise Practices Law. This law aims to protect franchisees by ensuring certain legal proceedings, such as arbitration, take place within the state where the franchise operates. This can provide a more convenient and potentially less costly venue for the franchisee, who may otherwise be required to travel to the franchisor's home state for such proceedings.
For a prospective Monicals Pizza franchisee in Indiana, this means that any disputes requiring arbitration will likely be resolved closer to their business location, reducing travel expenses and potentially making the legal process more accessible. However, it is important to note that the location can still be changed if both the franchisee and Monicals Pizza agree to a different site. Franchisees should carefully consider this aspect and seek legal counsel to understand their rights and obligations regarding arbitration.