Which Indiana Code section is the covenant not to compete modified to comply with for Itan franchises?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
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- The covenant not to compete that applies after the expiration or termination of the Franchise Agreement is hereby modified to the extent necessary to comply with Indiana Code 23-2-2.7-1(9).
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, for franchisees in Indiana, the covenant not to compete is modified to comply with Indiana Code 23-2-2.7-1(9). This means that the standard non-compete agreement that Itan uses in its franchise agreements has been adjusted to align with the specific requirements and limitations set forth in this particular section of Indiana law.
For a prospective Itan franchisee in Indiana, this modification is important because it ensures that the non-compete clause they agree to is legally enforceable within the state. Indiana law may place restrictions on the scope, duration, or geographic area of non-compete agreements, and Itan has taken steps to ensure their agreement adheres to these regulations. This provides a level of protection for the franchisee, as the non-compete cannot be overly broad or restrictive.
It is advisable for potential franchisees to carefully review the specific language of the modified non-compete clause and understand how it impacts their ability to engage in similar business activities after the franchise agreement expires or is terminated. Consulting with an attorney is recommended to fully grasp the implications of this modification and how it affects their rights and obligations under the Itan franchise agreement.