If the covenants not to compete upon expiration or termination of the Pearce Bespoke Franchise Agreement are inconsistent with Indiana Deceptive Franchise Practices Act § 23-2-2.7(9), which provisions are controlling?

According to the 2025 Pearce Bespoke Franchise Disclosure Document, if there are inconsistencies between the non-compete covenants upon expiration or termination of the Franchise Agreement and the Indiana Deceptive Franchise Practices Act § 23-2-2.7(9), the provisions of the Indiana Act will take precedence. This is outlined in the addendum to the FDD required by Indiana law. This means that the enforceability and scope of the non-compete agreement will be determined by Indiana law, regardless of what the franchise agreement initially states.

For a prospective Pearce Bespoke franchisee in Indiana, this is a beneficial provision. It ensures that the non-compete terms are reasonable and compliant with Indiana law, which is designed to protect franchisees from overly restrictive covenants. Without this clause, Pearce Bespoke could potentially enforce non-compete terms that are broader or more restrictive than what Indiana law allows.

It is important for a potential Pearce Bespoke franchisee to understand the specifics of Indiana Deceptive Franchise Practices Act § 23-2-2.7(9) to fully grasp their rights and obligations regarding non-competition. This includes understanding the permissible duration, geographic scope, and types of activities that can be restricted under Indiana law. Consulting with a franchise attorney is advisable to ensure full comprehension of these legal implications.

This type of addendum is common in franchise agreements to ensure compliance with state-specific franchise laws, which vary considerably. Franchisees should always carefully review any state-specific addenda to understand how local laws modify the standard franchise agreement.