What is the geographic scope of the post-term restrictive covenants for a Carvel franchise?

According to the 2025 Carvel Franchise Disclosure Document, the geographic scope of the post-term covenant not to compete is subject to state-specific regulations. Specifically, for franchises sold in Indiana, Section 15.4.B of the Franchise Agreement, which pertains to post-term restrictive covenants, is revised to limit the geographical extent of the covenant to an area of reasonable size.

This means that for a Carvel franchise located in Indiana, the restriction on operating a competing business after the termination of the franchise agreement will be limited to a geographic area deemed reasonable under Indiana law. The determination of what constitutes a "reasonable size" is not defined in this excerpt and may be subject to interpretation or further clarification within the full franchise agreement or under Indiana state law.

For prospective Carvel franchisees outside of Indiana, this excerpt does not provide specific details on the geographic scope of the post-term restrictive covenants. It is important for potential franchisees to carefully review Section 15.4.B of the Franchise Agreement and any applicable state laws to understand the specific geographic limitations they would be subject to after the termination of their franchise agreement. They should also seek legal counsel to fully understand the implications of these covenants in their specific state or territory.