For Cinnabon franchises sold in Indiana, how does the Indiana Addendum modify the post-term covenant not to compete outlined in Section 15.4.B of the Franchise Agreement?

According to the 2025 Cinnabon Franchise Disclosure Document, the Indiana Addendum modifies the post-term covenant not to compete for franchises sold in Indiana. Specifically, it revises Section 15.4.B of the Franchise Agreement, which deals with restrictive covenants after the termination of the franchise.

The addendum limits the geographical extent of the post-term covenant not to compete to an area of "reasonable size." This means that if a Cinnabon franchisee in Indiana leaves the system, the restriction on opening a competing business will be limited to a geographic area deemed reasonable under Indiana law, rather than a potentially broader area as originally defined in the standard Franchise Agreement.

This modification is important for prospective Cinnabon franchisees in Indiana because it provides some protection against overly broad non-compete restrictions. Indiana franchisees will have more flexibility to pursue other business opportunities after leaving the Cinnabon system, as the geographical scope of the non-compete will be limited to a "reasonable size," which is determined by Indiana law and is subject to interpretation and potential legal challenges.