If Crave reduces the scope of the non-compete agreement, when does the modification take effect?
Crave Franchise · 2025 FDDAnswer from 2025 FDD Document
- Item 17 of the Disclosure Document is amended to reflect the requirement under 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.
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- Item 17 is amended to state that this is subject to Indiana Code 23-2-2.7-1 (10).
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- Under Indiana Code 23-2-2.7-1 (10), jurisdiction and venue must be in Indiana if the franchisee so requests. This amends Article 19 of the Franchise Agreement and Section 19 of the Multi-Unit Development Agreement.
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- Under Indiana Code 23-2-2.7-1 (10), franchisee may not agree to waive any claims or rights.
Source: Item 23 — RECEIPTS (FDD pages 63–253)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the addendum for the state of Indiana addresses modifications to the non-compete agreement for Crave franchisees in that state. Specifically, Item 2 of the addendum states that Item 17 of the Disclosure Document is amended to reflect Indiana Code 23-2-2.7-1 (9), which requires that any post-term non-compete covenant must not extend beyond the franchisee's exclusive territory.
This modification takes effect immediately upon the franchisee signing the addendum. This ensures that the non-compete agreement aligns with Indiana state law, protecting the franchisee from overly broad restrictions that could hinder their ability to operate a similar business after the franchise agreement terminates.
Prospective Crave franchisees in Indiana should carefully review this addendum and understand the limitations on the non-compete agreement. It is also important to note that Item 4 of the addendum specifies that jurisdiction and venue must be in Indiana if the franchisee requests, further protecting the franchisee's rights under Indiana law.