Are covenants not to compete generally enforceable for Hydrodog franchises in North Dakota?

According to Hydrodog's 2025 Franchise Disclosure Document, covenants not to compete are generally considered unenforceable in the state of North Dakota. This information is specifically referenced in the addendum for North Dakota. This means that the standard non-compete clauses that Hydrodog includes in its franchise agreement may not be upheld by North Dakota courts.

For a prospective Hydrodog franchisee in North Dakota, this could be a significant advantage. After the franchise agreement ends, the franchisee may have more freedom to engage in similar business activities without the fear of legal repercussions from Hydrodog due to the non-compete agreement. This could allow a former franchisee to open a competing pet grooming business or work for a competitor without violating the terms of the original franchise agreement.

However, the FDD also indicates that disputes, except for matters coming under North Dakota law, will be mediated or litigated in Hillsborough County, Florida, and governed by Florida law. This creates a potential conflict, as North Dakota law would likely govern the enforceability of a non-compete within the state, but the dispute resolution process is set to occur in Florida under Florida law, except for matters coming under North Dakota law. Franchisees should seek legal counsel to understand how these provisions interact and the extent to which the non-compete is truly unenforceable in practice.

It is important for potential franchisees to consult with legal counsel to fully understand the implications of these provisions and how they might affect their rights and obligations under the franchise agreement, particularly in the state of North Dakota.