What geographical limitation applies to the post-term noncompetition covenant for a Bang Cookies franchise in Indiana?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
-
- Item 17, "Renewal, Termination, Transfer and Dispute Resolution," is supplemented, by the addition of the following:
- C. ITEM 17(r) is amended subject to Indiana Code 23-2-2.7-1(9) to provide that the post-term noncompetition covenant shall have a geographical limitation of the territory granted to Franchisee.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies's 2024 Franchise Disclosure Document, the post-term noncompetition covenant for franchisees in Indiana has a geographical limitation. Specifically, Indiana Code 23-2-2.7-1(9) dictates that the noncompetition covenant's geographical scope is limited to the territory granted to the franchisee.
This means that after the franchise agreement ends, a former Bang Cookies franchisee in Indiana is restricted from operating a competing business only within the specific territory they were initially granted. The restriction does not extend beyond that defined area.
For prospective Bang Cookies franchisees in Indiana, this amendment provides a more defined and limited scope to the post-term noncompetition obligations, offering more clarity and potentially greater flexibility in their future business endeavors after leaving the Bang Cookies system. Franchisees should carefully review their franchise agreement to understand the exact boundaries of their granted territory, as this will define the geographical limits of the non-compete clause.