In South Dakota, are covenants not to compete after termination of the Dog Haus Franchise Agreement generally enforceable?

According to Dog Haus's 2025 Franchise Disclosure Document, covenants not to compete upon termination or expiration of the Franchise Agreement are generally unenforceable in South Dakota, except in certain instances provided by law. This information is found in the South Dakota Addendum to the Disclosure Document.

This means that if a Dog Haus franchisee in South Dakota leaves the franchise, the standard non-compete clauses in the agreement that would typically prevent them from opening a similar business nearby may not be enforceable. However, there may be exceptions depending on the specific circumstances and what South Dakota law allows.

Prospective franchisees in South Dakota should seek legal advice to fully understand the implications of this addendum and how it affects their rights and obligations under the Dog Haus Franchise Agreement. It's important to note that while the non-compete may be difficult to enforce, other aspects of the agreement, such as those relating to trademarks and confidential information, remain in effect and could still restrict a former franchisee's activities.