What is the effect of the Indiana Acts on provisions of the Crave Cookies franchise agreement?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
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 23 — RECEIPTS (FDD pages 47–194)
What This Means (2025 FDD)
According to the 2025 Crave Cookies Franchise Disclosure Document, the "Indiana Acts," referring to the Indiana Franchise Act and the Indiana Deceptive Franchise Practices Act, modify specific provisions of the franchise agreement to ensure compliance with Indiana law.
The Indiana Acts impact provisions that might require franchisees to exclusively purchase goods, supplies, inventories, or services from Crave Cookies or its designated sources, especially if comparable quality items are available elsewhere. However, Crave Cookies can still publish a list of approved suppliers or require compliance with specific standards without this being considered exclusive designation. This exception does not apply to goods, supplies, inventories, or services that Crave Cookies manufactures or trademarks.
Additionally, the Indiana Acts prevent Crave Cookies from establishing a company-owned outlet engaged in a substantially identical business within the franchisee's exclusive territory or unfairly competing with the franchisee in a reasonable area if no exclusive territory is designated. The Acts also restrict Crave Cookies from substantially modifying the franchise agreement without the franchisee's written consent and from obtaining undisclosed benefits from the franchisee's business transactions with other parties, unless such benefits are properly accounted for and transmitted to the franchisee.