What is the specific section of the Indiana Deceptive Franchise Practices Act that addresses franchisor-owned outlets in relation to Pearce Bespoke?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) To the extent the Franchise Agreement contains provisions allowing the establishment of franchisor-owned outlets that are inconsistent with the Indiana Deceptive Franchise Practices Act § 23-2-2.7(2), the requirements of this section of the Indiana Act will control.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, the Indiana Deceptive Franchise Practices Act § 23-2-2.7(2) addresses franchisor-owned outlets.
This section of the Indiana Act will control to the extent that the Franchise Agreement contains provisions allowing the establishment of franchisor-owned outlets that are inconsistent with the Indiana Deceptive Franchise Practices Act § 23-2-2.7(2). This means that if the Pearce Bespoke franchise agreement has terms about the company opening its own stores that clash with Indiana law, then the Indiana law takes precedence.
For a prospective franchisee in Indiana, this addendum provides a level of protection by ensuring that the terms of the franchise agreement regarding franchisor-owned outlets comply with Indiana law. It clarifies that the Indiana Deceptive Franchise Practices Act will override any conflicting terms in the franchise agreement, specifically concerning the establishment of franchisor-owned outlets.