In Indiana, to what area does the post-termination non-competition covenant apply for an Azal Coffee franchise?

According to Azal Coffee's 2024 Franchise Disclosure Document, the post-termination non-competition covenant for franchisees in Indiana is limited to their Protected Area. This means that after the franchise agreement ends, the franchisee is only restricted from competing with Azal Coffee within the specific geographic area outlined in their agreement as their Protected Area.

This is a modification to the standard agreement, as indicated in Item 17 of the FDD, and it is specific to Indiana. The non-compete does not extend to areas within a radius of any other Azal Coffee franchise location. This provides a more limited scope compared to non-compete agreements in some other states, which might include larger geographic areas around multiple franchise locations.

This Indiana-specific clause offers a potential benefit to franchisees because it allows them more flexibility to operate a competing business outside of their Protected Area after the franchise agreement terminates. However, it is important for prospective franchisees to carefully review and understand the definition of their Protected Area in the Franchise Agreement to fully grasp the extent of the non-competition covenant.