Under what condition can Bang Cookies obtain money from any person with whom the Indiana 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, specifically regarding an amendment for Indiana franchisees, Bang Cookies can only obtain money, goods, services, or any benefit from someone the franchisee does business with under specific conditions.
Bang Cookies is permitted to receive such benefits if it is compensation for services they rendered to the franchisee. Additionally, Bang Cookies can receive these benefits if they are promptly accounted for and transmitted by the franchisee.
This means that Bang Cookies cannot simply profit from the franchisee's business relationships without providing a legitimate service or ensuring that any benefits received are properly documented and passed on to the franchisee. This amendment aims to protect the Indiana franchisee from unfair practices where Bang Cookies might exploit their business relationships for undisclosed gains.