What geographic area is covered by the post-term restrictive covenants for a Moes Southwest Grill franchise?

According to the 2025 Moe's Southwest Grill Franchise Disclosure Document, the standard post-term restrictive covenant's geographic extent may be subject to state-specific limitations. Specifically, for franchises sold in Indiana, Section 15.4.B of the Franchise Agreement, which addresses post-term restrictive covenants, is revised to limit the geographical extent of the covenant to an area of reasonable size.

This means that if a Moe's Southwest Grill franchise is located in Indiana, the franchisee would be bound by a post-term non-compete agreement that is limited to a "reasonable size" geographically. The FDD does not define what constitutes a "reasonable size", so prospective franchisees should seek clarification from the franchisor regarding specific distances or areas. For Moe's Southwest Grill franchises outside of Indiana, the standard franchise agreement would dictate the geographic scope of the post-term restrictive covenants, but the specific details of that standard agreement are not provided in the excerpt.

It is important for potential Moe's Southwest Grill franchisees to understand the implications of post-term restrictive covenants, as they can significantly impact their ability to operate a similar business after the franchise agreement ends. Franchisees should consult with legal counsel to fully understand the scope and enforceability of these covenants in their specific state or territory.