Does the Better Blend franchise disclosure document disclose restrictive covenants contrary to NDCC Section 9-08-06?

According to Better Blend's 2024 Franchise Disclosure Document, the document includes a North Dakota addendum that addresses restrictive covenants. Specifically, the Securities Commissioner has determined that franchise disclosure documents disclosing restrictive covenants that contradict NDCC Section 9-08-06 are considered unfair, unjust, or inequitable if they do not further disclose that such covenants will be subject to the statute. This means that Better Blend must acknowledge that any restrictive covenants are subject to North Dakota law.

For a prospective Better Blend franchisee in North Dakota, this addendum is important because it ensures that any restrictive covenants, such as non-compete clauses, are subject to the limitations and protections provided by North Dakota law. This could impact the enforceability and scope of such covenants, potentially offering more protection to the franchisee.

This disclosure is intended to protect franchisees by ensuring they are aware of their rights under North Dakota law regarding restrictive covenants. It is common for franchise agreements to include non-compete clauses, but the North Dakota addendum clarifies that these clauses are subject to state law, which may provide additional protections for the franchisee. Prospective franchisees should consult with legal counsel to fully understand the implications of these covenants and their rights under North Dakota law.