For a Bambu franchise in Indiana, what is the duration of the non-compete restriction if a franchisee leaves the system?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
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- The scope of the Post-Termination Covenant Not to Compete in Section 21.2 is limited to the 10 mile radius of the Franchisee's former Franchised Location.
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- The Summary column of Items 17(r) and (w) in the Chart in Item 17 are deleted and replaced by the following:
- 17(r): No competing business for 2 years within 10 miles of your shoppe.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Indiana franchisees are subject to a post-termination non-compete covenant. This means that if a franchisee's agreement is terminated, they are restricted from operating a competing business.
Specifically, the Indiana Rider to the Franchise Agreement modifies the scope of the post-termination covenant. The non-compete is limited to a 10-mile radius of the franchisee's former franchised location. Further, the summary column in Item 17(r) states that there is 'No competing business for 2 years within 10 miles of your shoppe.'
Therefore, a Bambu franchisee in Indiana who leaves the system is prohibited from operating a competing business within a 10-mile radius of their former location for a period of two years. This restriction is designed to protect Bambu's market share and proprietary information.