For Cinnabon franchises sold in Indiana, does the Indiana Addendum modify the Personal Covenants Agreement?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
INDIANA ADDENDUM TO PERSONAL COVENANTS AGREEMENT
Notwithstanding anything to the contrary stated in the Personal Covenants Agreement, the following provisions will supersede and apply:
- The Personal Covenants Agreement is revised to limit the geographical extent of the covenant not to compete to an area of reasonable size for all franchises sold in the State of Indiana.
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to the 2025 Cinnabon Franchise Disclosure Document, the Indiana Addendum does modify the Personal Covenants Agreement for franchises sold in Indiana. Specifically, the addendum includes a provision that directly addresses and revises the Personal Covenants Agreement.
The Indiana Addendum to the Personal Covenants Agreement states that its provisions will supersede anything to the contrary in the original agreement. A key revision is that the geographical extent of the covenant not to compete is limited to an area of reasonable size for all Cinnabon franchises sold in Indiana. This means that the restrictions on where a franchisee can operate a similar business after leaving the Cinnabon system are limited to a reasonable geographic area within Indiana.
This modification is important for prospective Cinnabon franchisees in Indiana as it provides more clarity and potentially less restrictive terms regarding post-term competition. Franchisees should carefully review both the original Personal Covenants Agreement and the Indiana Addendum to fully understand their obligations and rights, particularly concerning the non-compete clause.