If the geographic scope of the non-compete after termination of the Crave Franchise Agreement is deemed unreasonable, how will it be adjusted?

According to Crave's 2025 Franchise Disclosure Document, the standard post-term non-compete agreement is modified for franchisees in Indiana. Item 17 of the Crave Disclosure Document is amended to reflect Indiana Code 23-2-2.7-1 (9), which states that any post-term non-compete covenant must not extend beyond the franchisee's exclusive territory.

This means that for Crave franchisees in Indiana, the geographic scope of the non-compete agreement will be limited to their exclusive territory. This provides a more franchisee-friendly condition compared to the standard agreement, which typically restricts competition within a certain radius of the former franchise location or designated territory.

For prospective Crave franchisees in Indiana, this modification offers a significant advantage. If the standard non-compete terms are deemed too broad, Indiana law ensures that the restriction will be limited to the franchisee's exclusive territory, allowing for more flexibility in future business endeavors after the franchise agreement ends. Franchisees outside of Indiana should consult with a legal professional to understand how non-compete agreements are interpreted and enforced in their specific state.