For Ledgers franchises in Indiana, what is the geographic limit for non-competition agreements after termination or non-renewal, as defined by Indiana Code?

According to the 2025 Ledgers Franchise Disclosure Document, Indiana Code restricts non-competition agreements. For Ledgers franchises operating in Indiana, any non-compete provisions within the Franchise Agreement that apply after termination or non-renewal are limited to the geographic area granted in the Franchise Agreement.

Specifically, Indiana Code section 23-27-1(9) dictates that a franchisee cannot be restricted from competing with Ledgers for longer than three years or in an area larger than the exclusive territory granted by the Franchise Agreement. Therefore, upon termination of the Franchise Agreement in Indiana, a franchisee is restricted from engaging in a competing business for one year within their exclusive Franchise Territory.

This means that if a Ledgers franchisee in Indiana leaves the system, they can't operate a similar business within their previously assigned territory for one year. This restriction aims to protect Ledgers's business interests while also allowing the franchisee to pursue other opportunities after a reasonable period. Prospective franchisees should carefully review the definition of their exclusive territory in Schedule 1 of the Franchise Agreement to fully understand the geographic scope of this non-compete clause.