What specific Indiana Code section addresses post-term noncompetition covenants for City Publications franchises?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
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- ITEM 17 of the Disclosure Document is amended to add the following:
- ◼ Indiana Code 23-2-2.7-1(7) makes unlawful unilateral termination of a franchise unless there is a material violation of the Franchise Agreement and termination is not in bad faith.
- ◼ Indiana Code 23-2-2.7-1(5) prohibits a prospective general release of claims subject to the Indiana Deceptive Franchise Practices Law.
- ◼ 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 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, for franchisees in Indiana, Item 17 of the Disclosure Document is amended to include information about post-term noncompetition covenants. Specifically, Indiana Code 23-2-2.7-1(9) states that the post-term noncompetition covenant will have a geographical limitation of the territory granted to the franchisee.
This means that after the franchise agreement ends, a City Publications franchisee in Indiana will only be restricted from competing within the territory they were originally granted. This provides some protection for the franchisee, as the non-compete agreement cannot extend beyond their exclusive territory.
Prospective franchisees should be aware of this Indiana-specific modification to the standard franchise agreement, as it impacts their ability to operate a similar business after their franchise agreement with City Publications concludes. It is advisable to consult with legal counsel to fully understand the implications of Indiana Code 23-2-2.7-1(9) and how it applies to their specific situation.