How is the Beauty Bungalows covenant not to compete modified to comply with Indiana law?
Beauty_Bungalows Franchise · 2025 FDDAnswer from 2025 FDD Document
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- The covenant not to compete that applies after the expiration or termination of the Franchise Agreement for any reason is hereby modified to the extent necessary to comply with Indiana Code 23- 2-2.7-1 (9).
Source: Item 22 — CONTRACTS (FDD pages 47–48)
What This Means (2025 FDD)
According to Beauty Bungalows' 2025 Franchise Disclosure Document, the covenant not to compete is modified to comply with Indiana law. Specifically, the covenant that applies after the expiration or termination of the Franchise Agreement is modified to the extent necessary to comply with Indiana Code 23-2-2.7-1(9). This means that the standard non-compete terms outlined in the franchise agreement are adjusted to align with Indiana's specific legal requirements regarding non-compete clauses.
This modification ensures that the Beauty Bungalows franchise agreement adheres to Indiana state law, which may have specific limitations or requirements regarding the enforceability and scope of non-compete agreements. For a prospective franchisee in Indiana, this means the non-compete clause will be interpreted and enforced according to Indiana law, potentially offering more protection or different restrictions than in other states.
It is important for potential franchisees to understand the specifics of Indiana Code 23-2-2.7-1(9) and how it affects the enforceability of the non-compete agreement. Consulting with a legal professional familiar with Indiana franchise law is advisable to fully understand the implications of this modification.