For Carvel franchises sold in Indiana, does the Indiana Addendum modify the Personal Covenants Agreement?

According to Carvel's 2025 Franchise Disclosure Document, the Indiana Addendum does modify the Personal Covenants Agreement for franchises sold in Indiana. Specifically, the Indiana Addendum to the Personal Covenants Agreement states that its provisions will supersede anything to the contrary in the Personal Covenants Agreement itself.

One key modification outlined in the Indiana Addendum is that the geographical extent of the covenant not to compete is limited to an area of reasonable size for all Carvel franchises sold in Indiana. This means that the restrictions on where a franchisee can operate a similar business after leaving the Carvel system will be limited to a reasonable geographic area, as determined by Indiana law.

This modification is important for prospective Carvel franchisees in Indiana because it provides additional protection under Indiana law. By limiting the scope of the non-compete agreement, Indiana law aims to prevent franchisors from imposing overly broad restrictions that could hinder a former franchisee's ability to earn a living after leaving the franchise system. Franchisees should carefully review both the Personal Covenants Agreement and the Indiana Addendum to fully understand their rights and obligations regarding non-competition.