In Indiana, will Bang Cookies obtain money from any person with whom the franchisee does business?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies' 2024 Franchise Disclosure Document, an amendment addresses this question specifically for franchisees operating in Indiana. In accordance with Indiana Code Section 23-2-2.7-1(4), Bang Cookies will not obtain money, goods, services, or any other benefit from any person with whom the franchisee does business due to transactions between the franchisee and that person.
However, there are exceptions to this rule. Bang Cookies can receive compensation for services rendered directly by them to the franchisee. Additionally, if Bang Cookies receives any benefit, it must be promptly accounted for and transmitted by the franchisee.
This provision aims to protect Indiana Bang Cookies franchisees from unfair practices where the franchisor might profit from the franchisee's business relationships with suppliers or other third parties, ensuring transparency and fair dealing.