factual

For Bb.Q Chicken franchises in Indiana, what is the geographic limit for any post-term non-compete covenant?

Q: For Bb.Q Chicken franchises in Indiana, what is the geographic limit for any post-term non-compete covenant?

2. Item 17 of the Disclosure Document is amended to reflect the requirement under Indiana Code 23-2-2.7-1 (9), which states that any post term non-compete covenant must not extend beyond the franchisee's designated territory. - 3. Item 17 is amended to state that this is subject to Indiana Code 23-2-2.7-1 (10). - 4. Under Indiana Code 23-2-2.7-1 (10), jurisdiction and venue must be in Indiana if the franchisee so requests. The Franchise Agreement and Multi-Unit Operator Agreement are hereby amended. - 5. Under Indiana Code 23-2-2.7-1 (10), franchisee may not agree to waive any claims or rights. Source: Item 23 — RECEIPTS (FDD pages 62–283)

Bb_Q_Chicken Franchise · 2025 FDD

Answer from 2025 FDD Document

Item 17 of the Disclosure Document is amended to reflect the requirement under Indiana Code 23-2-2.7-1 (9), which states that any post term non-compete covenant must not extend beyond the franchisee's designated territory.

1. Item 17 is amended to state that this is subject to Indiana Code 23-2-2.7-1 (10).
1. Under Indiana Code 23-2-2.7-1 (10), jurisdiction and venue must be in Indiana if the franchisee so requests. The Franchise Agreement and Multi-Unit Operator Agreement are hereby amended.
- 1. Under Indiana Code 23-2-2.7-1 (10), franchisee may not agree to waive any claims or rights.

Source: Item 23 — RECEIPTS (FDD pages 62–283)

What This Means (2025 FDD)

According to Bb.Q Chicken's 2025 Franchise Disclosure Document, the post-term non-compete covenant for franchisees in Indiana is limited to the franchisee's designated territory. This is specified in an addendum required by the state of Indiana. This addendum modifies Item 17 of the Disclosure Document to reflect the requirements under Indiana Code 23-2-2.7-1 (9).

In practical terms, this means that if a Bb.Q Chicken franchisee in Indiana leaves the system, they are only restricted from operating a competing business within the specific geographic area outlined as their 'Designated Territory' in their franchise agreement. The Designated Territory is defined in Attachment 1 to the Franchise Agreement. This addendum ensures that the non-compete agreement adheres to Indiana state law, which protects franchisees from overly broad restrictions that could hinder their ability to earn a living after leaving the franchise system.

It is important for prospective Bb.Q Chicken franchisees in Indiana to carefully review Attachment 1 of their Franchise Agreement to fully understand the boundaries of their Designated Territory and the scope of the post-term non-compete covenant. They should also be aware that Indiana Code 23-2-2.7-1 (10) stipulates that jurisdiction and venue must be in Indiana if the franchisee requests and that the franchisee may not agree to waive any claims or rights.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.

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