Regarding the Jersey Mikes Franchise Agreement, what acknowledgement do the parties make concerning the enforceability of Section 18.7 under North Dakota Franchise Law?

According to Jersey Mikes' 2025 Franchise Disclosure Document, both the franchisor and franchisee acknowledge that certain parts of Section 18.7 of the Franchise Agreement may not be enforceable under North Dakota Franchise Law. However, the franchisee agrees to enforce the provisions of Section 18.7 to the extent that the law allows. This acknowledgement is added as Section 18.7(c) to the Franchise Agreement.

This modification ensures that the Franchise Agreement complies with North Dakota law, which may have specific regulations regarding certain clauses, particularly those related to competition or termination. By acknowledging the potential unenforceability of parts of Section 18.7, Jersey Mikes aims to avoid conflicts with North Dakota law and ensure that the agreement is interpreted and enforced in a manner consistent with state regulations.

For a prospective franchisee in North Dakota, this means that certain provisions in Section 18.7 might not be fully enforced. It is important to carefully review Section 18.7 with legal counsel to understand which specific parts may be affected and what the implications are. The franchisee is still expected to adhere to the enforceable parts of Section 18.7, so understanding the limitations and obligations is crucial.