In which state do the specific noncompetition and nonsolicitation limitations described apply to Fat Shack franchisees?
Fat_Shack Franchise · 2025 FDDAnswer from 2025 FDD Document
INDIANA
The following modifications are made to the Disclosure Document 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:
- The following statement is added to Item 12:
Indiana law prohibits us from establishing a franchisor-owned outlet engaged in a substantially identical business within your exclusive territory, or if no exclusive territory is designated, that competes unfairly with you within a reasonable area.
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- The Summary column of Items 17.r and 17.w are deleted and replaced by the following:
- 17.r: No interest in Competitive Business for 2 years within 10 miles of the former Restaurant Location.
17.w: Except to the extent governed by federal law, disputes related to a violation of the Indiana Franchises Act or the Indiana Deceptive Franchise Practices Act shall be governed by those laws, and all other matters regarding the Franchise Agreement shall be governed by Federal and Colorado law. The Colorado Consumer Protection Act does not apply.
Source: Item 23 — Receipts (FDD pages 53–223)
What This Means (2025 FDD)
According to the 2025 Fat Shack Franchise Disclosure Document, specific noncompetition and nonsolicitation limitations apply to franchisees in Indiana. The FDD outlines modifications to the disclosure document that are required by the Indiana Franchises Act and the Indiana Deceptive Franchise Practices Act.
Specifically, Indiana law prohibits Fat Shack from establishing a franchisor-owned outlet engaged in a substantially identical business within the franchisee's exclusive territory, or if no exclusive territory is designated, that competes unfairly within a reasonable area. Additionally, the summary column of Items 17.r and 17.w are modified for Indiana franchisees.
Item 17.r states that there is no interest in a competitive business allowed for 2 years within 10 miles of the former Restaurant Location. Item 17.w states that except to the extent governed by federal law, disputes related to a violation of the Indiana Franchises Act or the Indiana Deceptive Franchise Practices Act shall be governed by those laws, and all other matters regarding the Franchise Agreement shall be governed by Federal and Colorado law. The Colorado Consumer Protection Act does not apply.