In Indiana, what condition must be met for the termination of a Bang Cookies franchise to be lawful?

According to Bang Cookies' 2024 Franchise Disclosure Document, Indiana law stipulates specific conditions for the lawful termination of a franchise agreement.

Specifically, Indiana Code 23-2-2.7-1(7) mandates that Bang Cookies cannot unilaterally terminate a franchise unless the franchisee has committed a material violation of the Franchise Agreement. Furthermore, the termination must not be carried out in bad faith. This means Bang Cookies must have a legitimate, justifiable reason for ending the agreement, and the decision must be made honestly and fairly.

This provision protects Indiana Bang Cookies franchisees from arbitrary or unfair terminations. It ensures that Bang Cookies must demonstrate a significant breach of contract by the franchisee and act in good faith to terminate the agreement lawfully. A prospective franchisee in Indiana should carefully review the Franchise Agreement to understand what constitutes a 'material violation' and ensure they maintain thorough records of their compliance to protect their investment.