What constitutes 'good cause' for termination of a Beverly Anns Cookie franchise in Indiana?
Beverly_Anns_Cookie Franchise · 2025 FDDAnswer from 2025 FDD Document
Despite anything to the contrary in the Franchise Agreement, the following provisions will supersede and apply to all Franchises offered and sold in the State of Indiana:
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- The laws of the State of Indiana supersede any provisions of the FDD, the Franchise Agreement, or Franchisor's Choice of Law State law, if such provisions are in conflict with Indiana law.
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- The prohibition by Indiana Code 23-2-2.7-1(7) against unilateral termination of the Franchise without good cause or in bad faith, good cause being defined under law as including any material breach of the Franchise Agreement, will supersede the provisions of the Franchise Agreement relating to termination for cause, to the extent those provisions may be inconsistent with such prohibition.
Source: Item 23 — RECEIPTS (FDD pages 57–235)
What This Means (2025 FDD)
According to the 2025 Beverly Anns Cookie Franchise Disclosure Document, Indiana franchise laws offer specific protections to franchisees. For franchises operating in Indiana, the FDD states that Indiana law supersedes any conflicting provisions in the Franchise Agreement or the franchisor's choice of law.
Specifically, Indiana Code 23-2-2.7-1(7) prohibits the unilateral termination of a franchise by Beverly Anns Cookie without 'good cause' or in bad faith. The definition of 'good cause' under Indiana law includes any material breach of the Franchise Agreement by the franchisee. This means that Beverly Anns Cookie cannot terminate a franchise agreement in Indiana without a significant violation of the agreement by the franchisee.
This provision in the FDD modifies the standard termination clauses of the Beverly Anns Cookie Franchise Agreement to comply with Indiana law, providing franchisees in Indiana with additional legal protection against potentially unfair termination. Prospective franchisees in Indiana should carefully review the Franchise Agreement to understand what constitutes a 'material breach' that could lead to termination, and be aware that Indiana law will govern the interpretation and enforcement of these provisions.