For Mr. Sandless franchisees in Indiana, what is the maximum geographic scope of a post-term non-compete covenant, according to Indiana Code 23-2-2.7-1 (9)?

According to Mr. Sandless's 2025 Franchise Disclosure Document, Indiana Code 23-2-2.7-1 (9) dictates the geographic scope of post-term non-compete covenants for franchisees in Indiana. Specifically, any post-term non-compete agreement cannot extend beyond the franchisee's designated territory. This means that after the franchise agreement ends, a Mr. Sandless franchisee in Indiana is only restricted from competing within the territory they were originally granted.

This provision offers some protection to Indiana franchisees, as it prevents Mr. Sandless from enforcing overly broad non-compete restrictions that could stifle their ability to work in the industry after leaving the franchise system. The designated territory is a crucial element of the franchise agreement, defining the area where the franchisee has the right to operate and where the non-compete applies.

It is important for prospective Mr. Sandless franchisees in Indiana to carefully review the definition of their designated territory in the franchise agreement. Understanding the geographic boundaries of the non-compete is essential for assessing the potential limitations on their future business activities should they decide to leave the Mr. Sandless system. Franchisees should also be aware that this is subject to Indiana Code 23-2-2.7-1 (10).