Does the modification regarding exclusive purchasing from designated sources apply to principal goods, supplies, inventories, or services manufactured or trademarked by Better Blend?
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.
Source: Item 22 — CONTRACTS (FDD page 43)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the modification regarding exclusive purchasing from designated sources does not apply to the principal goods, supplies, inventories, or services manufactured or trademarked by Better Blend. Specifically, a provision in the franchise agreement could require franchisees to purchase goods, supplies, inventories, or services exclusively from Better Blend or sources it designates.
However, this requirement is modified to the extent required for the agreement to comply with the Indiana Acts. This modification stipulates that franchisees cannot be forced to purchase exclusively from Better Blend or its designated sources if goods, supplies, inventories, or services of comparable quality are available from other sources.
The exception to this modification is that it does not apply to principal goods, supplies, inventories, or services manufactured or trademarked by Better Blend. This means that Better Blend can require franchisees to purchase these specific items directly from them, regardless of whether comparable alternatives are available elsewhere. This ensures that Better Blend maintains control over the quality and consistency of its branded products and services.