After the termination of a Byrider franchise, what restrictions apply to the franchisee regarding competition?

According to the 2025 Byrider Franchise Disclosure Document, the restrictive covenants regarding competition are subject to North Dakota law. Specifically, Section 9-08-06 of the North Dakota Century Code limits Byrider's ability to restrict a franchisee's activities after the franchise agreement ends.

In North Dakota, covenants not to compete upon termination or expiration of the Franchise Agreement are generally unenforceable except in certain instances as provided by law. However, Byrider states that it and the franchisee will enforce these covenants to the maximum extent the law allows.

This means that while Byrider includes non-compete provisions in its franchise agreement, their enforceability in North Dakota is limited. A prospective franchisee should be aware that the actual restrictions on their activities after the franchise agreement ends may be less stringent than what is written in the agreement, depending on the specific circumstances and how North Dakota law is applied. It is advisable to seek legal counsel to fully understand the implications of these covenants and how they might affect future business endeavors.