Does the provision regarding City Wide retaining rebates, commissions, or other consideration paid by suppliers apply to Indiana franchisees?

According to City Wide's 2025 Franchise Disclosure Document, the provision regarding City Wide retaining rebates, commissions, or other consideration paid by suppliers will not apply to any Indiana franchisee. This is explicitly stated in Item 22, which amends Item 8 of the franchise agreement. The amendment references Indiana Code, Title 23, Article 2, Chapter 2.7-1(4) as the basis for this exception. This means that Indiana franchisees are protected by Indiana state law from City Wide retaining these types of payments from suppliers.

For a prospective City Wide franchisee in Indiana, this is a beneficial provision. It ensures that any rebates, commissions, or other considerations paid by suppliers related to the franchisee's business operations are not retained by City Wide. This could potentially increase the franchisee's revenue or reduce their costs, as they would directly benefit from any such payments.

It is important for potential franchisees to understand the specific details of Indiana Code, Title 23, Article 2, Chapter 2.7-1(4) to fully grasp the extent of this protection. While the FDD states that City Wide will not retain these payments, understanding the legal basis provides further clarity and assurance. This also highlights the importance of reviewing state-specific amendments in the FDD, as franchise agreements can be modified to comply with local laws, which can significantly impact the franchisee's rights and obligations.