For Carvel franchises sold in Indiana, what geographical limitation is placed on the post-term covenant not to compete?

According to Carvel's 2025 Franchise Disclosure Document, the post-term covenant not to compete for franchises sold in Indiana is limited to an area of reasonable size. This means that after the franchise agreement ends, a franchisee in Indiana will not be able to operate a competing business within a geographic area deemed reasonable under Indiana law.

This modification is specified in the Indiana Addendum to the Franchise Agreement. It revises Section 15.4.B of the standard agreement, which likely contains a broader or more specific geographic restriction. By limiting the restriction to a "reasonable size", the addendum aims to comply with Indiana's franchise laws, which may view overly broad non-compete clauses as unenforceable.

For a prospective Carvel franchisee in Indiana, this is a beneficial modification. It provides more flexibility to pursue other business opportunities after the franchise term, as the non-compete area will be limited to what is considered reasonable under Indiana law. It is important for the franchisee to understand what constitutes a "reasonable size" by seeking legal counsel and understanding Indiana state law regarding non-compete agreements.