In North Dakota, what does the Dog Haus addendum say about provisions restricting competition?

According to Dog Haus's 2025 Franchise Disclosure Document, the North Dakota addendum addresses non-competition covenants within the franchise agreement. It states that any provision restricting competition is contrary to Section 9-08-06 of the North Dakota Century Code. Furthermore, the addendum specifies that failing to disclose that such covenants may be subject to this statute makes them unfair, unjust, or inequitable under Section 51-09-09 of the North Dakota Franchise Investment Law.

This amendment is significant for prospective Dog Haus franchisees in North Dakota because it highlights the state's legal stance on non-compete clauses. North Dakota law views restrictions on competition with skepticism, and the Dog Haus franchise agreement must acknowledge this. This does not automatically invalidate non-compete provisions, but it does mean they will be scrutinized under North Dakota law.

For a potential franchisee, this means that the enforceability of any non-compete clause in their Dog Haus franchise agreement is not guaranteed in North Dakota. The franchisor must clearly disclose that these covenants are subject to state law. Franchisees should seek legal counsel to fully understand the implications of these clauses and how they are likely to be interpreted and enforced in North Dakota, given the protections afforded by state statutes.