What is the franchisor prohibited from obtaining from other persons with whom the Bang Cookies franchisee does business in Indiana?

According to Bang Cookies' 2024 Franchise Disclosure Document, specifically regarding Indiana, the franchisor is restricted from receiving certain benefits from the franchisee's business dealings. Under Indiana Code Section 23-2-2.7-1(4), Bang Cookies, as the franchisor, cannot obtain money, goods, services, or any other benefit from individuals or entities that the franchisee interacts with for business purposes. This restriction applies to any transaction between the franchisee and another party.

However, there are exceptions to this rule. Bang Cookies can receive compensation for services they directly provide to the franchisee. Additionally, the franchisor can receive benefits if those benefits are promptly accounted for and transmitted by the franchisee. This means that any such benefits must be transparently recorded and passed on to the appropriate party by the franchisee without undue delay.

This provision protects Bang Cookies franchisees in Indiana from potential conflicts of interest or unfair practices where the franchisor might profit from the franchisee's business relationships without providing direct services or ensuring transparency. It ensures that the franchisee's dealings are primarily for the benefit of their own business, rather than indirectly benefiting the franchisor through hidden or unaccounted arrangements.