What sections of the Bft Multi-Unit Agreement will not apply to the post-termination restrictions in Section 6.A?

According to the 2025 Bft Franchise Disclosure Document, specifically the rider for use in North Dakota, covenants not to compete are generally considered unenforceable in the State of North Dakota. However, Bft will enforce the covenants to the maximum extent the law allows. This means that while Section 6.A (Noncompetition Restrictions) of the Multi-Unit Agreement exists, its enforceability is questionable in North Dakota.

For a prospective Bft franchisee in North Dakota, this implies that the restrictions on competitive activities after the termination of the agreement may not be fully enforceable. However, it's important to note that Bft intends to enforce these covenants to the fullest extent permitted by law, which leaves room for interpretation by the courts. The franchisee should be aware that the actual enforceability will depend on how a court interprets North Dakota law in relation to the specific terms of the non-compete agreement.

This situation differs from states where non-compete agreements are strictly enforced. In North Dakota, the franchisee may have more flexibility to engage in competitive activities after the franchise agreement ends, but they should still expect Bft to attempt to enforce the restrictions. It is advisable for potential franchisees to seek legal counsel to understand the specific implications and limitations of the non-compete clause in North Dakota.