For Bonchon franchises in Indiana, is the geographical extent of the post-term covenant not to compete limited to the Franchisee's Territory?

According to Bonchon's 2025 Franchise Disclosure Document, the post-term covenant not to compete for franchises sold in Indiana is limited geographically to the Franchisee's Territory. This means that after the franchise agreement terminates, a franchisee in Indiana is only restricted from competing within their designated territory.

This limitation is outlined in the Indiana Addendum to the Franchise Agreement, which specifically revises Section 12.02 of the Franchise Agreement, titled "Covenant Not to Compete." This revision ensures that the standard non-compete clause, which might otherwise impose broader restrictions, is narrowed for Indiana franchisees. The addendum explicitly states that the geographical extent of the post-term covenant is limited to the franchisee's territory.

For a prospective Bonchon franchisee in Indiana, this is a beneficial provision. It provides more flexibility and reduces the potential restrictions on their ability to engage in a similar business after the franchise agreement ends. Without this addendum, the standard non-compete terms could prevent the franchisee from operating a competing business within a wider area, potentially hindering their future business opportunities. This revision offers a more balanced approach, protecting Bonchon's interests while allowing the franchisee more freedom to pursue other ventures within a reasonable geographical scope after the agreement concludes.