Will Focalpoint Coaching seek to enforce covenants not to compete in North Dakota?
Focalpoint_Coaching Franchise · 2025 FDDAnswer from 2025 FDD Document
- Covenant Not to Compete. The following language is added to the end of Section 15.D. of the Franchise Agreement:
Covenants not to compete such as those mentioned above generally are considered unenforceable in North Dakota. However, we will seek to enforce them to the extent enforceable.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to Focalpoint Coaching's 2025 Franchise Disclosure Document, the company acknowledges that covenants not to compete are generally considered unenforceable in North Dakota. However, Focalpoint Coaching states that it will still seek to enforce these covenants to the extent that they are enforceable under North Dakota law. This information is found in a rider to the franchise agreement specifically for use in North Dakota.
This means that while North Dakota law may limit the enforceability of non-compete agreements, Focalpoint Coaching intends to pursue enforcement where legally possible. A prospective franchisee in North Dakota should be aware that even though non-competes are generally disfavored, they may still face legal action from Focalpoint Coaching to enforce these provisions.
Given this stance, it would be prudent for a potential Focalpoint Coaching franchisee in North Dakota to consult with a legal professional to fully understand the scope and limitations of non-compete clauses under North Dakota law. This will help them assess the potential risks and obligations associated with signing the franchise agreement.