Under what conditions can Crave Cookies obtain benefits from a person the franchisee does business with in Indiana?
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.
Source: Item 23 — RECEIPTS (FDD pages 47–194)
What This Means (2025 FDD)
According to Crave Cookies' 2025 Franchise Disclosure Document, certain provisions are modified to comply with Indiana law. Specifically, any provision that requires a franchisee to purchase goods, supplies, inventories, or services exclusively from Crave Cookies or its designated sources is modified if comparable quality items are available from other sources. However, Crave Cookies can maintain a list of approved suppliers and set specifications for goods, supplies, inventories, or services without this being considered a designation of a source. This exception does not apply to principal goods, supplies, inventories, or services manufactured or trademarked by Crave Cookies.
This modification ensures that Indiana franchisees are not unduly restricted in their purchasing options, promoting fair competition among suppliers. It prevents Crave Cookies from exclusively benefiting from supplier relationships if similar quality products are available elsewhere. The exception for trademarked or manufactured goods allows Crave Cookies to maintain quality control over essential branded items.
For a prospective Crave Cookies franchisee in Indiana, this means they have the flexibility to source certain goods and services from suppliers beyond those directly designated by Crave Cookies, provided the quality is comparable. However, they must still adhere to Crave Cookies' standards and specifications, and this flexibility does not extend to trademarked or manufactured goods by Crave Cookies. This could potentially lead to cost savings or better service from local suppliers, but franchisees must ensure compliance with Crave Cookies' quality standards to avoid any issues.