For Ledgers franchisees in Indiana, what is the maximum duration of a non-compete covenant after termination or failure to renew the Franchise Agreement?

According to Ledgers's 2025 Franchise Disclosure Document, Indiana law limits the duration and scope of non-compete agreements for franchisees. Specifically, Indiana Code section 23-27-1(9) restricts non-compete covenants to a maximum of three years and limits the restricted area to the franchisee's exclusive territory.

For Ledgers franchisees in Indiana, this means that upon termination or failure to renew the Franchise Agreement, the franchisee cannot be involved in a competing business for more than one year within their exclusive Franchise Territory. This is more restrictive than the standard non-compete agreement outlined in Section 8.6 of the Ledgers Franchise Agreement, which generally restricts a franchisee from owning or managing a similar business for two years within the Territory or within twenty-five miles of its boundaries.

This Indiana-specific modification protects franchisees by preventing Ledgers from enforcing overly broad non-compete restrictions that could unduly limit their ability to earn a living after leaving the franchise system. Prospective Ledgers franchisees in Indiana should be aware of this provision, as it provides a more favorable legal framework compared to the standard franchise agreement.