In Indiana, to what extent are provisions in the Better Blend Franchise Agreement modified by the Indiana Acts?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
- **1.
Definitions.** Capitalized terms used but not defined in this Rider have the meanings given in the Agreement.
The "Indiana Acts" means the Indiana Franchise Act and the Indiana Deceptive Franchise Practices Act.
- **2.
Certain Provisions Modified.** 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 Indiana Rider modifies specific provisions of the standard 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.
The rider specifically modifies any provision that would require franchisees to purchase goods, supplies, inventories, or services exclusively from Better Blend or its designated sources, provided comparable quality items are available elsewhere. However, Better Blend can maintain a list of approved suppliers and set specifications for goods. This exception does not apply to principal goods, supplies, inventories, or services manufactured or trademarked by Better Blend.
Additionally, the rider addresses territorial exclusivity, preventing Better Blend from establishing a company-owned outlet engaged in a substantially identical business within the franchisee's exclusive territory or competing unfairly if no exclusive territory exists. It also restricts Better Blend from making substantial modifications to the franchise agreement without the franchisee's written consent and from receiving undisclosed benefits from the franchisee's business transactions with other parties. Any provisions in the Better Blend Franchise Agreement that do not comply with these stipulations are subject to modification.