What does the term 'Indiana Acts' refer to in the Bombs Away franchise agreement?
Bombs_Away 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 pages 35–36)
What This Means (2024 FDD)
According to Bombs Away's 2024 Franchise Disclosure Document, the term "Indiana Acts" is defined within the Indiana Rider to the Franchise Agreement. Specifically, it refers to both the Indiana Franchise Act and the Indiana Deceptive Franchise Practices Act.
This definition is important for prospective Bombs Away franchisees in Indiana because it clarifies which state laws are relevant to their franchise agreement. The Indiana Rider modifies certain provisions of the standard franchise agreement to ensure compliance with these Indiana Acts. This means that certain clauses in the standard agreement that might conflict with Indiana law are adjusted to protect the franchisee's rights under those laws.
For example, the rider addresses issues such as exclusive purchasing requirements, the establishment of franchisor-owned outlets within a franchisee's territory, modifications to the franchise agreement, and the franchisor receiving benefits from the franchisee's business dealings. These modifications are designed to align the Bombs Away franchise agreement with the legal requirements and protections afforded by Indiana law, providing a more balanced and legally sound relationship between the franchisor and franchisee in that state.