How enforceable are Body20 non-competition covenants after termination or expiration of the franchise in North Dakota?

According to Body20's 2025 Franchise Disclosure Document, non-competition covenants are generally considered unenforceable in North Dakota. However, Body20 states that it will enforce these covenants to the maximum extent the law allows. This applies to both the Development Agreement and the Franchise Agreement. This position is reinforced in the RIDER TO THE FRANCHISE AGREEMENT FOR USE IN NORTH DAKOTA.

For a prospective Body20 franchisee in North Dakota, this means that while the franchisor includes non-compete clauses in its agreements, the enforceability of these clauses is questionable under North Dakota law. The franchisor acknowledges this but indicates an intent to enforce them as much as legally possible.

This situation presents a degree of uncertainty. While North Dakota law generally disfavors non-compete agreements, the extent to which a court might enforce parts of such an agreement is not entirely clear. A franchisee should seek legal counsel to understand the specific restrictions and potential risks associated with the non-compete covenants in North Dakota. It would be prudent to discuss with Body20 what specific actions they might take to enforce the covenants and under what circumstances.