Are covenants not to compete upon termination or expiration of the Monicals Pizza Franchise Agreement generally enforceable in North Dakota?

According to Monicals Pizza's 2025 Franchise Disclosure Document, covenants not to compete upon termination or expiration of the Franchise Agreement are generally unenforceable in the State of North Dakota except in limited instances as provided by law. This amendment to Item 17 of the FDD specifically addresses the enforceability of non-compete clauses within the state.

For a prospective franchisee in North Dakota, this means that the standard non-compete restrictions typically found in franchise agreements may not be fully enforceable. This could allow a former Monicals Pizza franchisee to potentially open a competing business or work for a competitor shortly after leaving the Monicals Pizza system, without facing legal repercussions, depending on the specific circumstances and limitations defined by North Dakota law.

However, it is important to note the phrase "except in limited instances as provided by law." This suggests that there are specific situations where a non-compete agreement might still be enforceable in North Dakota. A prospective franchisee should seek legal counsel to understand these specific instances and how they might apply to their individual situation. Understanding the nuances of North Dakota's franchise laws is crucial before signing the Franchise Agreement.