Under the 1 800 Packouts Franchise Agreement, where is the Nondisclosure and Noncompete Agreement located?
1_800_Packouts Franchise · 2025 FDDAnswer from 2025 FDD Document
- Covenant Not to Compete. The following is added to the end of Section 16.E of the Franchise Agreement:
Covenants not to compete such as those mentioned above generally are considered unenforceable in North Dakota. However, we will seek to enforce them to the extent enforceable.
Source: Item 22 — CONTRACTS (FDD pages 66–67)
What This Means (2025 FDD)
Based on the 2025 1 800 Packouts Franchise Disclosure Document, the location of the Nondisclosure and Noncompete Agreement within the standard Franchise Agreement is not explicitly stated. However, the document includes a Rider specifically for franchisees in North Dakota, which references Section 16.E of the Franchise Agreement regarding covenants not to compete. This suggests that non-compete provisions are addressed in Section 16.E of the main agreement.
For prospective franchisees in North Dakota, the Rider clarifies that covenants not to compete are generally considered unenforceable in the state but that 1 800 Packouts will seek to enforce them to the extent permissible.
Given the lack of specific detail in the provided excerpts, it would be prudent for a potential 1 800 Packouts franchisee to ask the franchisor for the exact section of the Franchise Agreement that contains the Nondisclosure and Noncompete Agreement to fully understand its terms and implications, especially in states like North Dakota where enforceability may be limited.