Indiana
Franchise Registration
Indiana
Indiana is a franchise registration and business opportunity law state.
Indiana Franchise Law
Indiana defines a franchise as a contract by which:
- A franchisee is granted the right to engage in the business of dispensing goods or services, under a marketing plan or system prescribed in substantial part by a franchisor;
- The operation of the franchisee’s business pursuant to such a plan is substantially associated with the franchisor’s trademark, service mark, trade name, logotype, advertising, or other commercial symbol designating the franchisor or its affiliate; and
- The person granted the right to engage in this business is required to pay a franchise fee.
Indiana Franchise Registration Filing
Indiana is a franchise registration state that requires filing the Franchise Disclosure Document (“FDD”) with the state.
The initial filing fee is $511.26 and must be accompanied by the following documents:
- Consent to Service of Process
- Franchise Seller Disclosure Forms
- Franchise Disclosure Document
Indiana Franchise Amendments
Indiana requires an amendment filing within 30 days after the close of each quarter of its fiscal year of any material change. Burns Ind. Code Ann. § 23-2-2.5-13.1.
A “material change” requiring notification to the commissioner has occurred if:
- Within any three-month period, (i) 10% or more of franchisees (total or franchisees in Indiana) terminate, close or fail to renew; or (ii) franchisor purchases 10% or more of franchisees (total or franchisees in Indiana).
- The franchisor changes its corporate name or state of incorporation, there is a change in control over the franchisor or the franchisor is reorganized.
- The franchisor introduces a new product, service, model, or line that requires an additional investment exceeding 20% of the average investment made by all franchisees immediately before introduction.
- The franchisor discontinues or changes the marketing plan/system for any product or service if the average total sales attributable to it exceed 20% of the annual gross sales of existing franchisees immediately before the discontinuation or change.
- The franchisor changes franchise fees charged by the franchisor.
- Significant changes are made to (i) the obligations of a franchisee to purchase items from the franchisor or designated suppliers; (ii) limitations or restrictions on goods and services that a franchisee may offer; (iii) the obligations to be performed by a franchisor or franchisee; or (iv) the franchise agreement, including amendments to the franchise agreement.
- Any other change designated as material by commissioner by adopted rules or issued orders.
Indiana Franchise Renewals
Indiana registrations should be renewed 30 days before the one-year anniversary of the registration date.
The renewal filing fee is $255.63 and must be accompanied by the following documents:
- Consent to Service of Process
- Franchise Seller Disclosure Forms
- Franchise Disclosure Document
Indiana Franchise Relationship and Termination Law
Indiana makes it unlawful for a franchisor to terminate a franchisee without good cause. Ind. Code Ann. § 23-2-2.7-1. Further, unless otherwise provided in the agreement, any termination of a franchise or election not to renew a franchise must be made on at least ninety (90) days’ notice. Ind. Code Ann. § 23-2-2.7-3.
More Information About Indiana's Franchise Laws
Indiana Franchise Registration Laws
Indiana Business Opportunity Laws
Indiana also has Business Opportunity Laws, which define as “business opportunity” as he offer or sale or lease of any goods or services in beginning or operating a business with an initial payment of more than five hundred dollars ($500) and less than fifty thousand dollars ($50,000); and the seller represents
- The investor may or will earn an amount in excess of the initial payment as a result of the investment;
- A market exists for any goods to be made or services to be rendered by the investor;
- The seller may buy from the investor any goods to be made or services to be rendered by the investor;
- The seller or a person referred by the seller to the investor may or will sell, lease, or distribute the goods made or services rendered by the investor; or
- The seller may or will pay to the investor the difference between the initial payment and the investor’s earnings from the investment.
Indiana Business Opportunity Registration
The sale of business opportunities in Indiana requires a Written Disclosure Statement, surety bond or escrow account, and a filing fee of $50.
IN Code § 24-5-8-4 (2023).
Indiana Franchise Exemption from Business Opportunity Laws
Franchises are excluded from Indiana’s Business Opportunity Laws. IN Code § 24-5-8-1 (2023).
More Information about Indiana's Business Opportunity Laws
You can access Indiana’s Business Opportunities laws by clicking here.
If you offer a business opportunity in Indiana, we can help you determine if, and how, your company must comply with Indiana’s Franchise or Business Opportunity Laws.
Want to learn more about our franchise services and franchising in Indiana? Contact Us or call (757)-263-4596 to schedule a consultation. You can also visit our interactive map to learn more about other state franchise laws.
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