Indiana § 23-2-2.5-13.1 Material change in information; amended disclosure statement required

Indiana Statutes

§ 23-2-2.5-13.1 — Material change in information; amended disclosure statement required

Indiana § 23-2-2.5-13.1

Title 23BUSINESS AND OTHER ASSOCIATIONS

Art. 2SECURITIES AND FRANCHISES

Ch. 2.5Franchises

This text of Indiana § 23-2-2.5-13.1 (Material change in information; amended disclosure statement required) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ind. Code § 23-2-2.5-13.1 (2026).

Text

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 t

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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.