How is ITEM 17(r) of the Casiola FDD amended in Indiana regarding the post-term noncompetition covenant?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
- C. ITEM 17(r) is amended subject to Indiana Code 23-2-2.7-1(9) to provide that the post-term noncompetition covenant shall have a geographical limitation of the territory granted to Franchisee.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to the 2024 Casiola FDD, Item 17(r), concerning the post-term noncompetition covenant, is amended for franchisees in Indiana. The amendment is subject to Indiana Code 23-2-2.7-1(9) and stipulates that the geographical limitation of the post-term noncompetition covenant will be restricted to the territory granted to the franchisee.
This means that after the franchise agreement ends, a Casiola franchisee in Indiana will only be restricted from operating a competing business within the specific territory they were originally granted. This provides more clarity and potentially limits the scope of the non-compete agreement compared to a scenario where the geographical limitation could be broader.
This amendment offers a more defined and potentially less restrictive non-compete obligation for Casiola franchisees in Indiana, aligning with Indiana state law. Prospective franchisees should carefully review Item 17(r) in conjunction with Indiana Code 23-2-2.7-1(9) to fully understand the implications of the post-term noncompetition covenant within their specific territory.