In Indiana, what is the geographic limit of the post-termination covenant not to compete for a Bambu franchise, as specified in the Indiana Rider?

According to Bambu's 2025 Franchise Disclosure Document, the Indiana Rider modifies the standard non-compete agreement. Specifically, the geographic scope of the post-termination covenant not to compete, as detailed in Section 21.2 of the Franchise Agreement, is limited to a 10-mile radius of the franchisee's former franchised location in Indiana. This means that after the termination of the franchise agreement, a former Bambu franchisee in Indiana is restricted from operating a competing business within that 10-mile radius.

This modification is important for prospective franchisees in Indiana because it reduces the potential impact of the non-compete clause. Without this rider, the non-compete radius might be larger, potentially limiting the franchisee's future business opportunities more severely. The 10-mile radius provides a defined and relatively localized restriction, allowing the former franchisee more flexibility to start a similar business outside of that zone.

It is important to note that this modification is specific to Indiana, as indicated by the Indiana Rider. Franchise agreements often contain non-compete clauses, but their enforceability and scope can vary significantly by state due to differing franchise laws. The Indiana Rider serves to tailor the Bambu franchise agreement to comply with and reflect the specific legal requirements and protections afforded to franchisees under Indiana law. This ensures that the non-compete provision is reasonable and enforceable within the state.