Does the requirement that goods comply with specifications prescribed by Crave Cookies constitute designation of a source in Indiana?

According to Crave Cookies' 2025 Franchise Disclosure Document, the requirement that goods, supplies, inventories, or services comply with specifications and standards prescribed by Crave Cookies does not constitute designation of a source in Indiana. This is relevant to franchisees in Indiana because the Indiana Franchise Act and the Indiana Deceptive Franchise Practices Act (collectively, the "Indiana Acts") regulate certain aspects of the franchise relationship to protect franchisees.

Specifically, the Indiana Acts address situations where a franchisor requires franchisees to purchase goods exclusively from the franchisor or designated sources. However, Crave Cookies' FDD clarifies that simply publishing a list of approved suppliers or requiring compliance with certain specifications does not equate to designating a source under the Indiana Acts. This distinction is important because it allows Crave Cookies to maintain quality standards and brand consistency without unduly restricting a franchisee's ability to source goods from various suppliers.

This provision does not apply to the principal goods, supplies, inventories, or services manufactured or trademarked by Crave Cookies. This means that if Crave Cookies manufactures or trademarks certain products, franchisees may be required to purchase those items directly from Crave Cookies, regardless of availability elsewhere. This exception is common in franchising, as it allows franchisors to protect their proprietary products and ensure consistent quality across all franchise locations.