Are covenants not to compete enforceable for Bumper Man franchisees in North Dakota?
Bumper_Man Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Covenants not to compete such as those mentioned in Section 17(a) of the Franchise Agreement may be unenforceable in the State of North Dakota except in certain circumstances provided by law."
Source: Item 23 — RECEIPTS (FDD pages 45–180)
What This Means (2025 FDD)
According to the 2025 Bumper Man FDD, covenants not to compete, such as those mentioned in Section 17(a) of the Franchise Agreement, may be unenforceable in North Dakota, except in certain circumstances provided by law. This information is outlined in an addendum to the franchise agreement specifically for franchisees in North Dakota. This addendum takes precedence over conflicting terms in the standard agreement.
This means that the standard non-compete clauses in the Bumper Man Franchise Agreement might not be fully enforceable in North Dakota. The enforceability depends on specific circumstances as defined by North Dakota law, which are not detailed in this excerpt.
For a prospective Bumper Man franchisee in North Dakota, this could offer some flexibility. After the franchise agreement ends, the franchisee might have more freedom to engage in similar business activities without being restricted by the standard non-compete terms. However, it is important to seek legal counsel to understand the specific conditions under which non-compete clauses are unenforceable in North Dakota, as the FDD does not provide an exhaustive explanation.