factual

What Indiana code section does the Beauty Bungalows FDD reference regarding covenants not to compete?

Beauty_Bungalows Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. 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 franchise agreement is modified to comply with Indiana Code 23-2-2.7-1 (9) regarding covenants not to compete. This modification ensures that the non-compete clause adheres to Indiana state law.

This means that the standard non-compete agreement, which typically restricts a franchisee from operating a similar business during the term of the agreement and for a period afterward, is specifically adjusted to align with the requirements of Indiana Code 23-2-2.7-1 (9). Prospective franchisees in Indiana should carefully review this section of the Indiana code to understand the specific limitations and requirements it imposes on non-compete agreements.

It is important for potential Beauty Bungalows franchisees in Indiana to understand the implications of this modification, as it directly affects their ability to engage in similar business activities after the franchise agreement expires or is terminated. Consulting with a legal professional to review both the franchise agreement and Indiana Code 23-2-2.7-1 (9) is advisable to fully grasp the scope and limitations of the non-compete obligations.

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.