Does the Crave Cookies franchise disclosure document disclose the existence of covenants restricting competition, and if so, does it further disclose that such covenants will be subject to NDCC Section 9-08-06?

According to the 2025 Crave Cookies Franchise Disclosure Document, the document addresses restrictive covenants in North Dakota. Specifically, for franchisees in North Dakota, the disclosure document acknowledges that franchise disclosure documents that contain covenants restricting competition, which would be in conflict with NDCC Section 9-08-06, must disclose that these covenants are subject to the statute. This means that if the Crave Cookies franchise agreement includes any terms that limit a franchisee's ability to compete, the FDD must explicitly state that these terms are governed by North Dakota law.

This disclosure is intended to protect franchisees in North Dakota by ensuring they are aware that state law may impact the enforceability of non-compete clauses. NDCC Section 9-08-06 likely places certain restrictions or limitations on such covenants, and the disclosure serves to inform franchisees of their rights and the legal framework governing these restrictions.

For a prospective Crave Cookies franchisee in North Dakota, this addendum is an important consideration when reviewing the franchise agreement. It highlights that non-compete clauses are not absolute and are subject to state law, which may offer additional protections. Franchisees should consult with legal counsel to fully understand the implications of NDCC Section 9-08-06 and how it affects their rights and obligations under the franchise agreement.