What constitutes 'good cause' for Brueggers Bagels to terminate a franchise agreement in Indiana?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
- (7) Permitting unilateral termination of the franchise if such termination is without good cause or in bad faith. Good cause within the meaning of this subdivision includes any material violation of the franchise agreement.
- (12) If the Agreement contains a provision that is inconsistent with the Indiana Code, the provisions of the Indiana Code will supersede the Agreement.
- (13) This Addendum will have effect only if the Franchise Agreement or License Agreement and/or the relationship between FRANCHISOR and FRANCHISEE satisfy all of the jurisdictional requirements of the Indiana Code, without considering this Addendum. Except as expressly modified by this Addendum, the Franchise Agreement or License Agreement remains unmodified and in full force and effect.
Source: Item 23 — RECEIPTS (FDD pages 61–335)
What This Means (2025 FDD)
According to Brueggers Bagels' 2025 Franchise Disclosure Document, specifically the Indiana Addendum, Indiana law impacts what constitutes 'good cause' for termination. The FDD states that Indiana law prohibits franchise agreements from allowing unilateral termination by Brueggers Bagels without 'good cause' or in bad faith. 'Good cause' is defined as any material violation of the franchise agreement. This means that Brueggers Bagels can only terminate the agreement if the franchisee materially breaches the terms of the agreement.
This provision protects Indiana franchisees from arbitrary or unfair termination. It ensures that Brueggers Bagels must have a legitimate and substantial reason, based on the franchisee's failure to uphold their contractual obligations, before ending the franchise agreement. A prospective franchisee should carefully review the franchise agreement to understand what actions or omissions would be considered a 'material violation'.
It is important to note that this addendum applies only if the Franchise Agreement satisfies all jurisdictional requirements of the Indiana Code. The Indiana Code will supersede the Franchise Agreement if there are any inconsistencies. Therefore, a Brueggers Bagels franchisee in Indiana should be aware of the specific protections afforded to them under Indiana law regarding franchise terminations.