Does the Indiana Rider modify the Better Blend Franchise Agreement?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
- **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 Better Blend's 2024 Franchise Disclosure Document, the Indiana Rider does modify the Franchise Agreement. The Indiana Rider includes modifications to ensure compliance with the Indiana Franchise Act and the Indiana Deceptive Franchise Practices Act.
The rider specifies that any provision in the Franchise Agreement that would require franchisees to purchase goods, supplies, inventories, or services exclusively from Better Blend or its designated sources is modified. This modification applies if goods, supplies, inventories, or services of comparable quality are available from other sources. However, Better Blend can maintain a list of approved suppliers and set specifications and standards for these items. This modification does not apply to principal goods, supplies, inventories, or services manufactured or trademarked by Better Blend.
Additionally, the Indiana Rider modifies any provision that would allow Better Blend to establish a company-owned outlet engaged in a substantially identical business within the franchisee's exclusive territory or to compete unfairly with the franchisee in a reasonable area if no exclusive territory exists. It also modifies any provision allowing substantial modification of the franchise agreement by Better Blend without the franchisee's written consent. Finally, it addresses provisions that would allow Better Blend to obtain benefits from the franchisee's transactions with other parties without proper accounting and transmission of those benefits to the franchisee.