What Are The Franchise Laws in Indiana?
Indiana is a franchise registration state. This means that before a franchisor can offer or sell a franchise within the state, its Franchise Disclosure Document (FDD) must be registered with the Indiana Securities Division of the Indiana Secretary of State.
Note: if you’re thinking of starting a franchise in the sate of Indiana, always hire a Franchise Attorney in Indiana to help you navigate the laws and to help protect your interests.
The initial registration fee is $500 and the registration is effective for one year. Franchisors must renew this registration annually for a fee of $250.
The Indiana Deceptive Franchise Practices Act prohibits a wide range of provisions in franchise agreements that would be detrimental to franchisees.
This includes, for example, clauses that permit a franchisor to terminate or fail to renew a franchise without good cause, or that require the franchisee to purchase from the franchisor or designated suppliers when comparable quality goods are available elsewhere.
Additionally, the law protects against a franchisor establishing a competing outlet within a franchisee’s exclusive territory. The Act mandates that franchisors provide at least 90 days’ notice before terminating or not renewing a franchise.
A critical component of Indiana law is the requirement for franchisors to provide a prospective franchisee with the FDD at least 14 days before the franchisee signs any agreement or pays any money. This is a crucial disclosure period that allows a prospective franchisee time to thoroughly review the document and seek an Indiana Franchise Attorney for counsel.
Failure to comply with the registration, disclosure, and relationship provisions of Indiana law can lead to significant penalties for the franchisor, including civil actions for damages, rescission of the franchise agreement, and potentially criminal prosecution.
Here is a list of franchise lawyers you can hire in Indiana
Craig Fugate
571 Monon Blvd.
Suite 200
Carmel, Indiana
Jeffrey A. Hearn / Cohen, Garelick & Glazier
8888 Keystone Crossing, Suite 800
Indianapolis, Indiana
Josh Brown / Law Office of Josh F. Brown, LLC
836 E 64th St
Indianapolis, Indiana
