For a Bambu franchise in Indiana, what is the geographic radius of the non-compete restriction if a franchisee leaves the system?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
xecuted in connection with the franchise.
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- See the FIRST page of this Attachment IV for your signature.
INDIANA RIDER TO FRANCHISE AGREEMENT
The following modifications are made to the Franchise Agreement only to the extent required by the Indiana Franchises Act, IND. CODE § 23-2-2.5, and the Indiana Deceptive Franchise Practices Act, IND. CODE § 23- 2-2.7:
- The following language is added to Section 3.2:
Indiana law prohibits Bambu from establishing a Bambu-owned outlet engaged in a substantially identical business within Franchisee's Protected Area.
2.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the post-termination non-compete covenant for franchisees in Indiana is limited to a 10-mile radius of the former franchised location. This information is specified in the Indiana Rider to the Franchise Agreement.
This means that if a Bambu franchisee in Indiana leaves the system, they are restricted from operating a competing business within a 10-mile radius of their previous Bambu location. This restriction applies for a period of two years, as indicated in the summary column of Item 17(r). The non-compete agreement aims to protect Bambu's market share and brand recognition within a specific geographic area.
It is important for prospective franchisees to understand the implications of this non-compete clause. If they plan to exit the Bambu system and remain in the same geographic area, their ability to start a similar business will be restricted. This could impact their future business opportunities and potential income. Franchisees should carefully consider this restriction before entering into a franchise agreement with Bambu.