What is the geographic limit of the post-termination covenant not to compete for a Fat Shack franchisee in Indiana, as defined in Section 21.2?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
NA RIDER TO THE FRANCHISE AGREEMENT
The following modifications are made to the Franchise Agreement only to the extent required by the Indiana Franchises Act, IND. CODE § 23-2-2.5, and the Indiana Deceptive Franchise Practices Act, IND. CODE § 23-2-2.7:
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to the 2025 Fat Shack Franchise Disclosure Document, the standard post-termination covenant not to compete outlined in Section 21.2 is modified for franchisees in Indiana. Instead of the standard restriction, the geographic scope is limited to a 10-mile radius of the borders of the franchisee's former restaurant location.
This modification means that a former Fat Shack franchisee in Indiana is only restricted from operating a competitive business within that 10-mile radius. This is a significant benefit compared to the standard agreement, which, as stated in section 21.2, restricts the franchisee from operating a competitive business within a 10-mile radius of the former restaurant location or within a 10-mile radius of any other franchised or company-owned Fat Shack restaurant.
This Indiana-specific modification offers a more limited restriction, potentially allowing former franchisees greater flexibility in pursuing other business ventures after leaving the Fat Shack system, provided they stay outside the 10-mile radius of their former location. Prospective franchisees in Indiana should understand this modification as a more favorable condition compared to the standard non-compete terms.