Indiana franchise termination law

What Indiana Code chapter 23-2-2.7 says about good cause, 90 days' notice, non-renewal and remedies, read from a mirror of the statute.

Indiana's rule sits in Indiana Code chapter 23-2-2.7, which Justia titles "Deceptive Franchise Practices". It does not set a cure period. It says a franchise agreement may not allow termination without good cause or in bad faith, and it sets a default of 90 days' notice.

One caution first. Indiana's own legislature site did not serve the statute text when this page was prepared on 28 October 2026, so everything below was read from Justia's copy of the 2025 Indiana Code. Check the official text before relying on any wording here.

What the chapter says, in order

Good cause. IC 23-2-2.7-1(7) makes it unlawful for an agreement to permit "unilateral termination of the franchise if such termination is without good cause or in bad faith." The same subdivision says good cause "includes any material violation of the franchise agreement."
Notice. IC 23-2-2.7-3 says: "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) day's notice." Two points follow from the words. The agreement can provide otherwise, and the text read does not say the notice must be in writing.
Cure. No cure period appears in the chapter as read. This page does not state one, and it does not say that none exists elsewhere in Indiana law.
Exceptions with no cure. The chapter as read lists no short-notice or no-cure grounds. The agreement's own terms matter here, because section 3 yields to them.

Non-renewal

IC 23-2-2.7-1(8) bars an agreement from letting the franchisor fail to renew "without good cause or in bad faith." It then adds that the chapter does not stop an agreement from saying it is not renewable at expiry, or that it is renewable if the franchisee meets stated conditions. So the renewal terms written into the agreement carry real weight. No duty to repurchase inventory or equipment appears in the sections read.

Who is covered

The chapter applies to agreements between a franchisor and a franchisee who is "either a resident of Indiana or a nonresident who will be operating a franchise in Indiana." It borrows the meaning of "franchise" from IC 23-2-2.5-1, and that definition was not opened for this page. Whether a particular agreement is covered is a question for the statute's full text and a lawyer licensed in Indiana.

Remedies, time limit and waivers

Under IC 23-2-2.7-4, a franchisee injured by a prohibited provision or practice may bring an action "to recover damages, or reform the franchise agreement." Section 7 says no action may be brought "more than two (2) years after the violation." The text read mentions no attorney fees and no injunction.

Under 23-2-2.7-1(5), an agreement may not require the franchisee to assent in advance to a release or waiver of the chapter's liability, except arbitration before an independent arbitrator. Subdivision (10) also makes unlawful any provision "limiting litigation brought for breach of the agreement in any manner whatsoever."

Questions to look for in your own notice and agreement

Does the agreement set its own termination notice period, and is it longer or shorter than 90 days?
Does the notice give a reason, and does it point to a clause of the agreement?
Does the agreement say whether it renews, and on what conditions?
Does it contain a release, a waiver or a litigation limit that you signed in advance?
What is the date of the alleged violation, given the two year limit?

The notice you received and your franchise agreement control your own dates. A lawyer licensed in Indiana can tell you how the chapter applies. Related reading: what a default notice states, the cure period explained and how the state laws compare.