Does the Bombs Away franchise disclosure document disclose the existence of covenants restricting competition, and if so, does it further disclose that such covenants will be subject to NDCC Section 9-08-06?

According to the 2024 Bombs Away Franchise Disclosure Document, the document addresses restrictive covenants in North Dakota. Specifically, the North Dakota Addendum states that franchise disclosure documents disclosing covenants restricting competition contrary to NDCC Section 9-08-06 must further disclose that such covenants will be subject to the statute.

This means that if the Bombs Away franchise agreement contains any clauses that restrict a franchisee's ability to compete, those clauses must explicitly acknowledge that they are subject to North Dakota state law regarding covenants restricting competition. This ensures that North Dakota franchisees are aware of their rights and the limitations on such restrictive covenants under state law.

For a prospective Bombs Away franchisee in North Dakota, this addendum is an important protection. It prevents Bombs Away from enforcing overly broad or unfair non-compete agreements that violate North Dakota law. Franchisees should carefully review Item 17 of the FDD and the franchise agreement itself to identify any restrictive covenants and ensure they comply with this disclosure requirement. If there are restrictive covenants, the franchisee should confirm that the disclosure explicitly states that these covenants are subject to NDCC Section 9-08-06.