For Mr. Sandless franchisees in Indiana, can a post-term non-compete covenant extend beyond the franchisee's designated territory?

According to Mr. Sandless's 2025 Franchise Disclosure Document, Item 17 is amended for franchisees in Indiana to comply with Indiana Code 23-2-2.7-1 (9). This code stipulates that any post-term non-compete agreement cannot extend beyond the franchisee's designated territory. This amendment ensures that Mr. Sandless franchisees in Indiana are protected by this specific state law regarding non-compete clauses.

This means that after the franchise agreement expires or is terminated, Mr. Sandless cannot prevent a former franchisee in Indiana from competing in areas outside their original territory. This provides the franchisee with more flexibility and options for future business ventures. The FDD also states that Item 17 is subject to Indiana Code 23-2-2.7-1 (10).

Furthermore, Indiana Code 23-2-2.7-1 (10) mandates that jurisdiction and venue must be in Indiana if the franchisee requests it, amending Article 24 of the Franchise Agreement. This offers additional legal protection and convenience to Indiana franchisees in case of disputes. The same code also ensures that franchisees cannot waive any claims or rights, further safeguarding their interests under the franchise agreement.