For Kidokinetics franchises in Indiana, what Indiana code section modifies the covenant not to compete after the expiration or termination of the Franchise Agreement?

According to the 2024 Kidokinetics Franchise Disclosure Document, for franchises offered and sold in Indiana, the covenant not to compete that applies after the expiration or termination of the Franchise Agreement is modified to comply with Indiana Code 23-2-2.7-1 (9). This means that the standard non-compete clause in the Kidokinetics franchise agreement is subject to specific limitations and requirements under Indiana law.

This modification is significant for prospective Kidokinetics franchisees in Indiana because it ensures that the non-compete agreement is reasonable and enforceable under Indiana law. Non-compete agreements are often scrutinized by courts, and state laws like Indiana's aim to protect franchisees from overly broad restrictions that could hinder their ability to earn a living after leaving the franchise system.

Specifically, Indiana Code 23-2-2.7-1 (9) likely addresses the permissible scope, duration, and geographic area of the non-compete clause. A prospective franchisee should carefully review this specific section of the Indiana code to understand their rights and obligations regarding post-termination competition. They should also seek legal counsel to ensure they fully understand the implications of the non-compete agreement as modified by Indiana law.

It is important for potential Kidokinetics franchisees to understand how state laws can modify franchise agreements, especially concerning matters like termination, non-renewal, and non-compete clauses. This ensures that the franchisee's rights are protected and that the terms of the agreement are fair and reasonable under the applicable state laws.