Does Pearce Bespoke require a franchisee's written consent for substantial modifications to the Franchise Agreement under Indiana law?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
The Indiana Securities Commissioner requires that certain provisions contained in franchise documents be amended to be consistent with Indiana law, including the Indiana Franchises Act, Ind. Code Ann. §§ 1 - 51 (1994) and the Indiana Deceptive Franchise Practices Act, Ind. Code Ann. § 23-2-2.7 (1985) (collectively referred to as the "Acts"). To the extent that (a) the jurisdictional requirements of the Acts are met and (b) this Franchise Disclosure Document and Franchise Agreement contain provisions that are inconsistent with the following, such provisions are hereby amended:
- (b) The franchisor may not make any substantial modification of the Franchise Agreement without the franchisee's written consent.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, if the jurisdictional requirements of the Indiana Franchises Act are met, Pearce Bespoke is prohibited from making any substantial modifications to the Franchise Agreement without the franchisee's written consent. This protection is provided under the Indiana Deceptive Franchise Practices Act § 23-2-2.7(2). This stipulation ensures that Pearce Bespoke franchisees in Indiana have a say in significant changes to their franchise agreements, preventing the franchisor from unilaterally imposing modifications that could be detrimental to their business.
This requirement for written consent for substantial modifications is a notable benefit for prospective Pearce Bespoke franchisees in Indiana. It ensures that the franchisee has the right to review and approve any significant changes to the agreement, providing a level of security and control over their investment. This is particularly important because franchise agreements often govern many aspects of the business, and changes could impact profitability, operational procedures, or other critical factors.
It is important for prospective franchisees to understand the specific types of modifications that would be considered "substantial" under Indiana law. While the FDD states that substantial modifications require written consent, it does not define what constitutes a substantial modification. Franchisees should seek clarification from Pearce Bespoke regarding this definition and consult with legal counsel to fully understand their rights and obligations under Indiana franchise law. This will help ensure they are fully aware of the protections afforded to them and can make informed decisions regarding their franchise agreement.