In Indiana, which section handles franchise matters related to Brueggers Bagels?
Brueggers_Bagels Franchise · 2025 FDDAnswer from 2025 FDD Document
INDIANA ADDENDUM TO THE FRANCHISE AGREEMENT AND LICENSE AGREEMENT
FRANCHISOR and FRANCHISEE have signed a Franchise Agreement or License Agreement for a franchise to be located in Indiana. This Addendum reflects provisions of Indiana law.
Pursuant to Section 23.2-2.7-1 of the Indiana Code, it is unlawful for any franchise agreement entered into between any franchisor and a franchisee who is either a resident of Indiana or a nonresident who will be operating a franchise in Indiana to contain any of the following provisions:
- (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 service 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.
Source: Item 23 — RECEIPTS (FDD pages 61–335)
What This Means (2025 FDD)
According to the 2025 Brueggers Bagels Franchise Disclosure Document, franchise matters specific to Indiana are addressed in the "INDIANA ADDENDUM TO THE FRANCHISE AGREEMENT AND LICENSE AGREEMENT." This addendum is designed to reflect provisions of Indiana law that may impact the franchise agreement.
The Indiana Addendum outlines specific stipulations in accordance with Section 23.2-2.7-1 of the Indiana Code. These stipulations address issues such as exclusive purchasing requirements, franchisor-owned outlets within a franchisee's territory, and modifications to the franchise agreement. For example, the addendum states that franchise agreements cannot force franchisees to purchase goods exclusively from the franchisor if comparable quality goods are available elsewhere. It also addresses the franchisor's ability to open competing outlets or modify the agreement without the franchisee's written consent.
For a prospective Brueggers Bagels franchisee in Indiana, this addendum is crucial because it clarifies their rights and protections under Indiana law. It ensures that certain clauses within the standard franchise agreement are interpreted and applied in accordance with Indiana statutes, potentially overriding conflicting terms. Franchisees should carefully review this addendum with legal counsel to fully understand their obligations and rights within the state.