What actions are Monicals Pizza franchisees prohibited from taking that would divert business from the Franchised Restaurant to a Competitive Business?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
- a) During the term of Recipient's relationship with Franchisee and for a period of two (2) years after the expiration or termination of Recipient's relationship with Franchisee, regardless of the cause of expiration or termination, Recipient shall not, directly or indirectly, for themselves or through, on behalf of or in conjunction with, any person, persons, partnership, corporation, limited liability company or other business entity, divert or attempt to divert any business or customer of Franchisee to any Competitive Business, by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Company's service mark "Monical's Pizza®" and such other trade names, trademarks, service marks, trade dress, designs, graphics, logos, emblems, insignia, fascia, slogans, drawings and other commercial symbols as the Company designates to be used in connection with Monical's Pizza Restaurants or the Company's uniform standards, methods, procedures and specifications for the establishment and operation of Monical's Pizza Restaurants.
- b) During the term of Individual's relationship with Franchisee, Individual shall not, directly or indirectly, for themselves or through, on behalf of or in conjunction with, any person, persons, partnership, corporation, limited liability company or other business entity, carry on, be engaged in or take part in, render services to, or own or share in the earnings of any Competitive Business anywhere within the United States without the express written consent of Franchisee.
- c) For a two (2) year period following the term of Individual's relationship with Franchisee, regardless of the cause of termination, Individual shall not, directly or indirectly, for themselves or through, on behalf of or in conjunction with, any person, persons, partnership, corporation, limited liability company or other business entity, carry on, be engaged in or take part in, render services to, or own or share in the earnings of any Competitive Business within a twenty-five (25) mile radius of Franchisee's Franchised Restaurant or within Franchisee's Area of Primary Responsibility, whichever is greater, or within twenty-five (25) miles of any other Monical's Pizza Restaurant without the express written consent of Franchisee. For purposes of this Agreement, Franchisee's "Area of Primary Responsibility" is defined as:
d) During the term of Individual's relationship with Franchisee and for a period of two (2) years thereafter, regardless of the cause of termination, Individual shall not, directly or indirectly, solicit or otherwise attempt to induce or influence any employee or other business associate of Franchisee, Company or any other Monical's Pizza Restaurant to compete against, or terminate or modify his, her or its employment or business relationship with, Franchisee, Company or any other Monical's Pizza Restaurant.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, franchisees are restricted from actions that could divert business away from their Monicals Pizza restaurant or any other Monicals Pizza location to a competitive business. Specifically, during the term of their relationship with the franchisee, a recipient (defined elsewhere in the document) cannot directly or indirectly attempt to divert any business or customer of the franchisee to any Competitive Business. This includes any direct or indirect inducement or any other action that could harm the goodwill associated with the Monicals Pizza brand, service marks, trade dress, and operational standards.
Furthermore, during the term of an individual's relationship with the franchisee, the individual is prohibited from engaging in, rendering services to, or owning any Competitive Business anywhere in the United States without the franchisee's express written consent. After the relationship ends, this restriction continues for two years within a 25-mile radius of the franchisee's restaurant or the Area of Primary Responsibility, whichever is greater, or within 25 miles of any other Monicals Pizza Restaurant, again without express written consent.
These restrictions are designed to protect Monicals Pizza's market and brand integrity. Franchisees and their associates are also prohibited from soliciting or attempting to influence any employee or business associate of the franchisee, the company, or any other Monicals Pizza Restaurant to compete against or terminate their relationship with Monicals Pizza. These measures ensure that franchisees and their staff remain loyal and do not use their knowledge or relationships to benefit a competing business, safeguarding the Monicals Pizza system and its franchisees.