What is the condition regarding the termination of a Bang Cookies franchise in Indiana that would be considered unlawful?

According to Bang Cookies's 2024 Franchise Disclosure Document, Indiana Code 23-2-2.7-1(7) specifies that it is unlawful for Bang Cookies to unilaterally terminate a franchise agreement unless there is a material violation of the agreement by the franchisee and the termination is not done in bad faith. This amendment to Item 17 of the FDD, which covers "Renewal, Termination, Transfer and Dispute Resolution," is specific to franchisees operating in Indiana.

For a prospective Bang Cookies franchisee in Indiana, this means that the franchisor cannot simply terminate the agreement without a significant breach on the franchisee's part. The termination must also be carried out in good faith, implying fair dealing and honest intent. This provision offers some protection to the franchisee against arbitrary or capricious termination by Bang Cookies.

This type of protection is not uncommon in franchise law, as many states have enacted laws to protect franchisees from unfair termination practices. The inclusion of this amendment in the Indiana FDD acknowledges and incorporates the specific requirements of Indiana law, ensuring that the franchise agreement complies with state regulations. Franchisees should be aware of these protections and understand their rights under Indiana law regarding franchise termination.