factual

For a Cool Binz franchise operating in Indiana, what Indiana Code section governs non-competition covenants after the franchise terminates or expires?

Cool_Binz Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. The Summary section of Item 17(r.) entitled Non-Competition Covenants after the Franchise Terminates or Expires is amended to provide that the provisions contained in the Franchise Agreement and Item 12 of this Disclosure Document are subject to Indiana Code 23-2-2-7-1(9), which prohibits covenants not to compete which extend beyond any exclusive Territory granted to you.

Source: Item 23 — RECEIPTS (FDD pages 63–238)

What This Means (2025 FDD)

According to Cool Binz's 2025 Franchise Disclosure Document, for franchisees operating in Indiana, the provisions regarding non-competition covenants after the franchise terminates or expires are subject to Indiana Code 23-2-2-7-1(9). This code section prohibits non-compete agreements that extend beyond any exclusive territory granted to the franchisee.

This means that if a Cool Binz franchisee in Indiana has an exclusive territory, any non-compete agreement cannot prevent them from competing outside of that territory after the franchise agreement ends. The Indiana Code aims to protect franchisees from overly broad restrictions that could hinder their ability to earn a living after leaving the Cool Binz system.

Prospective Cool Binz franchisees in Indiana should carefully review their franchise agreement and Item 12 of the FDD, keeping in mind that Indiana Code 23-2-2-7-1(9) will take precedence over any conflicting terms. It is advisable to seek legal counsel to fully understand the implications of the non-compete provisions and how they apply to their specific situation and territory.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.