In North Dakota, what state's laws apply to a Byrider franchise, and what is the exception?

According to Byrider's 2025 Franchise Disclosure Document, the franchise agreement is generally governed by the laws of a specific state. However, in North Dakota, any state law regulating the offer or sale of franchises or governing the relationship between Byrider and its franchisee will not apply unless its jurisdictional requirements are met independently, without reference to the agreement's general choice-of-law provision. Additionally, the enforceability of provisions in the agreement that restrict the franchisee and its owners' competitive activities will be governed by the laws of the state in which the franchisee's business is located, which would be North Dakota.

This means that while the franchise agreement might specify that another state's laws govern the contract, North Dakota's franchise laws will take precedence in regulating the franchise relationship and the offer or sale of the franchise itself, provided that North Dakota's jurisdictional requirements are met independently. Furthermore, if there are any disputes regarding non-compete clauses, North Dakota law will govern their enforceability, regardless of what the franchise agreement states about the governing law.

For a prospective Byrider franchisee in North Dakota, this is a beneficial provision. It ensures that local franchise laws and regulations designed to protect franchisees will apply, and that non-compete agreements will be assessed under North Dakota law, which may be more favorable to the franchisee than the laws of another state. This offers an added layer of protection and legal certainty for the franchisee operating in North Dakota.