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Are covenants not to compete enforceable for Deer Solution franchisees in North Dakota?

Deer_Solution Franchise · 2025 FDD

Answer from 2025 FDD Document

Articles 6 and 17 of the Franchise Agreement are hereby amended by the addition of the following language: "Covenants not to compete such as those mentioned above are generally considered unenforceable in the State of North Dakota."

Source: Item 23 — RECEIPTS (FDD pages 55–246)

What This Means (2025 FDD)

According to the 2025 Deer Solution Franchise Disclosure Document, covenants not to compete are generally considered unenforceable in North Dakota. Specifically, the North Dakota FDD Amendment supplements Article 6 and 17 of the Franchise Agreement, stating that covenants not to compete are generally unenforceable in the state. This amendment is applicable if the franchisee is a resident of North Dakota or if their Deer Solution business will be located within North Dakota.

This means that Deer Solution franchisees operating in North Dakota may have more freedom to engage in competitive activities after the franchise agreement ends, compared to franchisees in other states where such covenants are strictly enforced. However, the FDD also states that each provision of the amendment is effective only to the extent that the jurisdictional requirements of North Dakota Law are met independently without reference to the amendment.

Prospective franchisees should consult with a legal expert in North Dakota to fully understand the implications and enforceability of non-compete clauses, as the specific circumstances and interpretation of North Dakota law will govern the actual enforceability. While the FDD suggests these covenants are generally unenforceable, legal advice will provide a clearer picture of a franchisee's rights and obligations.

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.