In Indiana, can Brueggers Bagels establish a company-owned outlet engaged in a substantially identical business within the franchisee's exclusive territory?

According to the 2025 Brueggers Bagels Franchise Disclosure Document, Indiana law impacts the ability of Brueggers Bagels to establish a company-owned outlet within a franchisee's exclusive territory. Specifically, for franchise agreements in Indiana, it is unlawful for the franchise agreement to allow Brueggers Bagels to establish a company-owned outlet engaged in a substantially identical business to that of the franchisee within the exclusive territory granted to the franchisee. If no exclusive territory is designated, the agreement cannot permit Brueggers Bagels to compete unfairly with the franchisee within a reasonable area.

This provision in the Indiana Code aims to protect franchisees by preventing Brueggers Bagels from directly competing with them within their designated territory. This protection ensures that the franchisee has a fair opportunity to establish and grow their business without direct competition from the franchisor itself. The law recognizes the investment and effort franchisees put into their businesses and seeks to safeguard their interests.

For a prospective Brueggers Bagels franchisee in Indiana, this means that the franchise agreement cannot legally allow Brueggers Bagels to open a competing company-owned store within their exclusive territory. If the franchisee does not have an exclusive territory, the agreement also cannot allow Brueggers Bagels to compete unfairly with the franchisee within a reasonable area. This provides a level of assurance that Brueggers Bagels will not undermine the franchisee's business by establishing a competing outlet nearby. Franchisees should carefully review their franchise agreement and understand their territorial rights and protections under Indiana law.