In Indiana, what is the effect of the certain provisions modified provision on the Better Blend Franchise Agreement?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
Any provision of the Agreement which would have any of the following effects is hereby modified to the extent required for the Agreement to be in compliance with the Indiana Acts:
- (1) Requiring goods, supplies, inventories, or services to be purchased exclusively from the franchisor or sources designated by the franchisor where such goods, supplies, inventories, or services of comparable quality are available from sources other than those designated by the franchisor.
However, the publication by the franchisor of a list of approved suppliers of goods, supplies, inventories, or services or the requirement that such goods, supplies, inventories, or services comply with specifications and standards prescribed by the franchisor does not constitute designation of a source nor does a reasonable right of the franchisor to disapprove a supplier constitute a designation.
This subdivision does not apply to the principal goods, supplies, inventories, or services manufactured or trademarked by the franchisor.
(2) Allowing the franchisor to establish a franchisor-owned outlet engaged in a substantially identical business to that of the franchisee within the exclusive territory granted the franchisee by the franchise agreement; or, if no exclusive territory is designated, permitting the franchisor to compete unfairly with the franchisee within a reasonable area.
(3) Allowing substantial modification of the franchise agreement by the franchisor without the consent in writing of the franchisee.
(4) Allowing the franchisor to 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 to the franchisee.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to the 2024 Better Blend Franchise Disclosure Document, the "Certain Provisions Modified" section in the Indiana Rider addresses specific aspects of the franchise agreement to ensure compliance with Indiana state laws. The "Indiana Acts" are defined as the Indiana Franchise Act and the Indiana Deceptive Franchise Practices Act.
Specifically, any provision in the Better Blend Franchise Agreement that would have certain effects is modified to comply with Indiana law. This includes provisions that require franchisees to purchase goods, supplies, inventories, or services exclusively from Better Blend or its designated sources, if comparable quality items are available elsewhere. However, Better Blend can maintain a list of approved suppliers and set specifications for goods and services, and this exception does not apply to items manufactured or trademarked by Better Blend.
The modifications also address the establishment of franchisor-owned outlets that compete unfairly with franchisees, substantial modifications to the franchise agreement without the franchisee's written consent, and the franchisor obtaining undisclosed benefits from the franchisee's transactions with other parties. These modifications ensure that the Better Blend franchise agreement adheres to Indiana's franchise laws, providing certain protections to franchisees operating in Indiana.