Under what conditions can Beverly Anns Cookie unilaterally terminate my Franchise Agreement in Indiana?

According to Beverly Anns Cookie's 2025 Franchise Disclosure Document, Indiana law affects the brand's ability to unilaterally terminate a franchise agreement in the state. Specifically, Indiana Code 23-2-2.7-1(7) makes it unlawful for Beverly Anns Cookie to unilaterally terminate a Franchise Agreement with an Indiana franchisee unless there is a material violation of the Franchise Agreement and the termination is not in bad faith.

This means that Beverly Anns Cookie cannot simply terminate the agreement without a valid, significant reason. The violation must be "material," suggesting it must be a substantial breach of the agreement's terms. Furthermore, the termination must be carried out in good faith, implying honesty and fair dealing. This provision aims to protect Indiana franchisees from arbitrary or unfair termination by Beverly Anns Cookie.

This protection is specific to Indiana franchisees due to the state's franchise laws. Franchise agreements typically outline various conditions under which the franchisor can terminate the agreement, but this Indiana-specific clause adds an additional layer of protection for franchisees operating in Indiana. Prospective franchisees in Indiana should carefully review the franchise agreement and understand what constitutes a "material violation" to ensure they are in compliance and to protect their investment.