To what extent is each provision of the North Dakota Addendum effective for Monicals Pizza?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
| between Monical Pizza Corporation and | This Addendum to the Area Development Agreement is agreed to this day of, 20, by and | |
|---|---|---|
| 1. | In recognition of The North Dakota Securities Commission, the following provisions contained in the Area Development Agreement are amended to be consistent with North Dakota law, including the North Dakota Franchise Investment Law, North Dakota Century Code Addendum, Chapter 51-19, §51-19-01 et seq.: | |
| | with North Dakota law, the covenant may not be enforceable. | Covenants not to compete upon termination or expiration of the Area Development Agreement are generally enforceable in the State of North Dakota in limited instances as provided by law. If the Agreement contains a covenant not to complete that is inconsistent |
| | conflict of laws, North Dakota Law shall control. | Section 13.1 of the Area Development Agreement is amended to state in the event of a |
| | Dakota law. | Sections 13.2 and 13.7 are amended to state that a provision requiring litigation or arbitration to be conducted in a forum other than North Dakota is void with respect to claims under North |
| 2. | Agreement or exhibits or attachments thereto, the terms of this Addendum shall govern. | Each provision of this Addendum shall be effective only to the extent that the jurisdictional requirements of the North Dakota Law applicable to the provisions are met independently of this Addendum. To the extent this Addendum shall be deemed to be inconsistent with any terms or conditions of said Area Development |
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to the 2025 Monicals Pizza FDD, the North Dakota Addendum modifies the Area Development Agreement to align with North Dakota law. Specifically, covenants not to compete are enforceable only in limited instances as provided by law if the agreement contains a covenant not to complete that is inconsistent with North Dakota law. Section 13.1 of the Area Development Agreement is amended such that North Dakota Law shall control in the event of conflict of laws.
Additionally, Sections 13.2 and 13.7 are amended to state that any provision requiring litigation or arbitration to be conducted in a forum other than North Dakota is void with respect to claims under North Dakota law. Each provision of the addendum is effective only to the extent that the jurisdictional requirements of North Dakota law are met independently of the addendum.
In practical terms, this means that Monicals Pizza franchisees in North Dakota will have their Area Development Agreements interpreted and enforced in accordance with North Dakota law, especially concerning non-compete clauses, choice of law, and forum for dispute resolution. This addendum aims to protect the rights of the developer (franchisee) under North Dakota's franchise laws.
It is important for prospective Monicals Pizza franchisees in North Dakota to carefully review the addendum and understand how it modifies the standard Area Development Agreement. They should also consult with legal counsel to ensure they fully understand their rights and obligations under North Dakota law.