Under what conditions does the Indiana Rider modify the Crave Cookies Franchise Agreement?
Crave_Cookies Franchise · 2025 FDDAnswer from 2025 FDD Document
- **1.
Definitions.** Capitalized terms used but not defined in this Rider have the meanings given in the Agreement.
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 Crave Cookies' 2025 Franchise Disclosure Document, the Indiana Rider modifies the franchise agreement to ensure compliance with the Indiana Franchise Act and the Indiana Deceptive Franchise Practices Act. Specifically, the rider adjusts any provision that would: require exclusive purchasing from the franchisor when comparable goods are available elsewhere; allow the franchisor to unfairly compete within the franchisee's territory; permit substantial modification of the agreement by the franchisor without the franchisee's written consent; or allow the franchisor to receive undisclosed benefits from the franchisee's transactions with other parties.
This rider is crucial for prospective Crave Cookies franchisees in Indiana as it protects them from potentially restrictive or unfair terms in the standard franchise agreement. For instance, franchisees are not obligated to purchase supplies exclusively from Crave Cookies if they can find comparable quality goods from other sources. This can lead to cost savings and increased flexibility in managing their business.
However, the rider does state that the franchisor can still publish a list of approved suppliers and require goods to meet certain specifications. Additionally, the modification regarding exclusive purchasing does not apply to goods manufactured or trademarked by Crave Cookies. The Indiana Rider aims to balance the interests of both the franchisor and franchisee, ensuring a fair and compliant franchise relationship within the state of Indiana.