How do Indiana Code § 23-2-2.7-1(2) and § 23-2-2.7-2(4) restrict Eos Worldwide from competing with a franchisee?

According to the 2025 FDD, for franchises offered and sold in Indiana, Item 12 and Section 3.1 of the Eos Worldwide Franchise Agreement are subject to Indiana Code § 23-2-2.7-1(2) and § 23-2-2.7-2(4). These Indiana statutes prohibit Eos Worldwide from competing unfairly with a franchisee within a reasonable area.

This means that Eos Worldwide is legally restricted from engaging in competitive activities that would unfairly harm an existing franchisee's business within a defined geographic area. The specific definition of "reasonable area" is not provided in this excerpt and would likely be subject to interpretation based on factors such as market conditions and geographic considerations.

For a prospective Eos Worldwide franchisee in Indiana, this provides some protection against direct competition from the franchisor itself. However, it's important to understand what constitutes "unfair" competition and the scope of the "reasonable area" in which this protection applies. A potential franchisee should seek clarification from Eos Worldwide regarding these terms and potentially consult with a legal professional to fully understand their rights under Indiana law.