For Cinnabon franchises in Indiana, how does the Indiana Addendum to the Personal Covenants Agreement affect the geographical extent of the covenant not to compete?

According to the 2025 Cinnabon Franchise Disclosure Document, the Indiana Addendum to the Personal Covenants Agreement specifically addresses the geographical extent of the covenant not to compete for franchises sold in Indiana. The addendum revises the Personal Covenants Agreement to limit the geographical scope of the non-compete clause to an area of reasonable size.

This means that for Cinnabon franchises in Indiana, the standard non-compete agreement is modified to ensure it complies with Indiana law, which generally requires such restrictions to be reasonable in scope. The term "reasonable size" is not specifically defined in the FDD, but it implies that the restricted area will be limited to what is necessary to protect Cinnabon's legitimate business interests without unduly restricting the franchisee's ability to earn a livelihood after the franchise agreement ends.

For a prospective Cinnabon franchisee in Indiana, this addendum offers a degree of protection. It prevents Cinnabon from enforcing an overly broad non-compete agreement that could prevent the franchisee from working in a related field within a large geographical area after the franchise term. However, the specific definition of "reasonable size" would likely be subject to interpretation and potentially legal challenges, so a franchisee should seek legal counsel to fully understand their rights and obligations.