2020 Indiana Code
Title 23. Business and Other Associations
Article 2. Securities and Franchises
Chapter 2.5. Franchises
23-2-2.5-13.1. Material Change in Information; Amended Disclosure Statement Required

Sec. 13.1. (a) Subject to subsection (b), a person that has a registration in effect under this chapter shall, not later than thirty (30) days after the occurrence of any material change in the information set forth in the person's disclosure statement under section 13 of this chapter, notify the commissioner of the change by filing an amended copy of the disclosure statement.

(b) A "material change" requiring notification to the commissioner under subsection (a) includes the following:

(1) The occurrence of any of the following within any three (3) month period:

(A) The termination, closing, or failure to renew the franchise of either:

(i) ten percent (10%) of all franchises of the franchisor, regardless of the location of the franchises; or

(ii) ten percent (10%) of the franchisor's franchises that are located in Indiana.

(B) The purchase by the franchisor of either:

(i) ten percent (10%) of the franchisor's existing franchises, regardless of the location of the franchises; or

(ii) ten percent (10%) of the franchisor's existing franchises that are located in Indiana.

(2) Any:

(A) change in control, corporate name, or state of incorporation; or

(B) reorganization;

of the franchisor.

(3) Either of the following:

(A) The introduction of any new product, service, model, or line involving, directly or indirectly, an additional investment by franchisees that exceeds twenty percent (20%) of the average investment made by all franchisees immediately before the introduction of the new product, service, model, or line.

(B) The discontinuation or modification of the marketing plan or marketing system of any product or service of the franchisor if the average total sales attributable to the product or service exceed twenty percent (20%) of the average annual gross sales of existing franchisees immediately before the discontinuation or modification of the marketing plan or marketing system.

(4) Any change in the franchise fees charged by the franchisor.

(5) Any significant change in:

(A) the obligations of a franchisee to purchase items from the franchisor or the franchisor's designated sources;

(B) the limitations or restrictions on goods or services that a franchisee may offer to a customer;

(C) the obligations to be performed by the franchisor or a franchisee; or

(D) the franchise contract or agreement, including any amendments to the franchise contract or agreement.

(6) Any other change designated as material by the commissioner by rule adopted or order issued under this chapter.

As added by P.L.152-2020, SEC.3.

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