factual

To what extent will Chicken Guy enforce covenants not to compete in North Dakota?

Chicken_Guy Franchise · 2025 FDD

Answer from 2025 FDD Document

Covenants not to compete are generally considered unenforceable in the State of North Dakota; however, we will enforce the covenants to the maximum extent the law allows.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–46)

What This Means (2025 FDD)

According to the 2025 Chicken Guy Franchise Disclosure Document, covenants not to compete are generally considered unenforceable in North Dakota. However, Chicken Guy states that it will enforce these covenants to the maximum extent the law allows. This information is found in an addendum to the franchise agreement required for North Dakota franchisees or developers.

This means that while North Dakota law generally disfavors non-compete agreements, Chicken Guy intends to pursue enforcement of these agreements as much as legally possible within the state. A prospective franchisee should be aware that the enforceability of these covenants can be uncertain and may depend on the specific circumstances and interpretation of North Dakota law.

Given this uncertainty, it is crucial for potential Chicken Guy franchisees in North Dakota to seek legal counsel to fully understand the implications and potential limitations of non-compete clauses in their franchise agreement. Understanding the specific restrictions and how they might be applied is essential for making an informed decision about investing in a Chicken Guy franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.