For Buns On Fire franchises in Indiana, what is the geographical scope of the post-term covenant not to compete?

According to the 2025 Buns On Fire Franchise Disclosure Document, the geographical scope of the post-term covenant not to compete for franchises sold in Indiana is limited to the franchisee's territory. Specifically, an addendum to the franchise agreement states that Section 10.2 of the Franchise Agreement is revised to limit the geographical extent of the post-term covenant not to compete to the Franchisee's Territory for all franchises sold in the State of Indiana.

This means that after the franchise agreement terminates, expires, or is not renewed, the franchisee is restricted from operating a competitive business only within their defined territory. This is a significant point for prospective franchisees in Indiana, as it narrows the scope of the non-compete agreement compared to what might be standard in other states or outlined in the general franchise agreement.

This revision offers a more limited restriction, allowing former franchisees greater flexibility to operate a similar business outside their previously assigned territory after the franchise agreement ends. However, the exact definition of the Franchisee's Territory is defined in Exhibit A, which is not included in the provided documentation. Therefore, a prospective franchisee should carefully review Exhibit A to fully understand the geographical limitations of the post-term covenant not to compete.