How are covenants not to compete generally considered in the State of North Dakota for Casiola franchisees?

According to Casiola's 2024 Franchise Disclosure Document, covenants not to compete are generally considered unenforceable in the State of North Dakota. This information is specifically outlined in the North Dakota Franchise Agreement Amendment. This amendment applies only to franchisees who are residents of North Dakota or whose Casiola business will be located within North Dakota.

This means that the standard non-compete clauses in Casiola's franchise agreement may not be enforceable against franchisees operating in North Dakota. Covenants restricting competition, without disclosing that such covenants may be subject to Section 9-08-06 of the North Dakota Century Code, are considered unfair, unjust, and inequitable.

For a prospective Casiola franchisee in North Dakota, this could provide more flexibility after the franchise agreement ends. However, it's important to note that the specific circumstances and wording of any non-compete clause could still be subject to legal interpretation. It is advisable to seek legal counsel to fully understand the implications of this provision.

The amendment also addresses other aspects of the franchise agreement, such as general releases upon renewal, consent to termination or liquidated damages, consent to jurisdiction of courts outside of North Dakota, and waivers of trial by jury or exemplary and punitive damages, all of which are generally not enforceable in North Dakota, further protecting the rights of franchisees in that state.