What section of the Focalpoint Coaching Franchise Agreement is modified by the Rider regarding the covenant not to compete for Focalpoint Coaching?

According to the 2025 Focalpoint Coaching Franchise Disclosure Document, the Rider modifies Section 15.D of the Franchise Agreement concerning the covenant not to compete, specifically for franchisees in North Dakota. The addendum states that covenants not to compete are generally considered unenforceable in North Dakota. However, Focalpoint Coaching will seek to enforce them to the extent enforceable.

This modification acknowledges the legal landscape in North Dakota, where non-compete agreements face significant challenges in enforceability. For a prospective Focalpoint Coaching franchisee in North Dakota, this means that while the standard franchise agreement includes a covenant not to compete, its practical effect may be limited.

Focalpoint Coaching is indicating that it will attempt to enforce the covenant to the extent legally possible, but the franchisee should be aware of the prevailing legal sentiment against such covenants in North Dakota. This could impact the franchisee's ability to operate a similar business after the franchise agreement terminates, but the protections afforded to Focalpoint Coaching may be weaker compared to other states with more favorable non-compete laws. It is important for the franchisee to consult with a legal professional to understand the specific implications of this clause in North Dakota.