Is the Bang Cookies Franchise Disclosure Document effective in Indiana?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
Indiana FDD Amendment
Amendments to the Bang Cookies Franchise Disclosure Document
- Item 8, "Restrictions on Sources of Products and Services," is supplemented by the addition of the following:
Under Indiana Code Section 23-2-2.7-1(4), the franchisor will not obtain money, goods, services, or any other benefit from any other person with whom the franchisee does business, on account of, or in relation to, the transaction between the franchisee and the other person, other than for compensation for services rendered by the franchisor, unless the benefit is promptly accounted for, and transmitted by the franchisee.
- Item 6, "Other Fees" and Item 9, "Franchisee's Obligations", are supplemented, by the addition of the following:
The franchisee will not be required to indemnify franchisor for any liability imposed upon franchisor as a result of franchisee's reliance upon or use of procedures or products that were required by franchisor, if the procedures or products were utilized by franchisee in the manner required by franchisor.
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- Item 17, "Renewal, Termination, Transfer and Dispute Resolution," is supplemented, by the addition of the following:
- A. Indiana Code 23-2-2.7-1(7) makes unlawful unilateral termination of a franchise unless there is a material violation of the Franchise Agreement and termination is not in bad faith.
- B. Indiana Code 23-2-2.7-1(5) prohibits a prospective general release of claims subject to the Indiana Deceptive Franchise Practices Law.
- C. ITEM 17(r) is amended subject to Indiana Code 23-2-2.7-1(9) to provide that the post-term noncompetition covenant shall have a geographical limitation of the territory granted to Franchisee.
- D. ITEM 17(v) is amended to provide that Franchisees will be permitted to commence litigation in Indiana for any cause of action under Indiana Law.
- E. ITEM 17(w) is amended to provide that in the event of a conflict of law, Indiana Law governs any cause of action that arises under the Indiana Disclosure Law or the Indiana Deceptive Franchise Practices Act.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
Yes, the Bang Cookies 2024 Franchise Disclosure Document (FDD) includes amendments specific to Indiana, indicating that the franchise is registered and effective in that state. These amendments address specific legal requirements and franchisee rights under Indiana law. These modifications suggest that Bang Cookies has taken the necessary steps to comply with Indiana's franchise regulations.
Specifically, the Indiana FDD Amendment modifies certain aspects of the standard franchise agreement to align with Indiana law. Item 8 regarding restrictions on product sources is supplemented to comply with Indiana Code Section 23-2-2.7-1(4), ensuring that any benefits Bang Cookies receives from franchisee transactions are properly accounted for and transmitted. Additionally, Items 6 and 9 are supplemented to protect franchisees from indemnifying Bang Cookies for liabilities resulting from reliance on required procedures or products.
Furthermore, Item 17, concerning renewal, termination, transfer, and dispute resolution, is also amended to reflect Indiana law. These amendments include provisions that protect franchisees from unilateral termination without cause, prohibit prospective general releases of claims, limit the geographical scope of post-term non-competition covenants to the franchisee's territory, and allow franchisees to litigate in Indiana for causes of action under Indiana law. In case of conflict of law, Indiana Law governs any cause of action that arises under the Indiana Disclosure Law or the Indiana Deceptive Franchise Practices Act.
For a prospective Bang Cookies franchisee in Indiana, these state-specific addenda provide additional legal protections and clarify the terms of the franchise agreement within the context of Indiana law. It is important for potential franchisees to carefully review these amendments and understand their rights and obligations under Indiana's franchise regulations before investing in a Bang Cookies franchise.