factual

Is Monicals Pizza allowed to establish or grant rights to establish Monical's Restaurants outside of the Development Territory?

Monicals_Pizza Franchise · 2025 FDD

Answer from 2025 FDD Document

Franchisor shall not, so long as this Development Agreement is in force and effect and Developer is not in default under any of the terms hereof or of any Franchise Agreement for any Monical's Restaurant, establish, own or operate, or license others to establish, own or operate, any Monical's Restaurant within the Development Territory other than to Developer pursuant to this Development Agreement; provided, however, Franchisor and its Affiliates retain the right:

  • 2.2.1 to continue to own and operate, and allow others to continue to own and operate, Monical's Restaurants existing inside of the Development Territory as of the date of this Development Agreement;
  • 2.2.2 to establish, or grant to others the right to establish, Monical's Restaurants outside of the Development Territory;
  • 2.2.3 to establish and operate, and license others to establish and operate, businesses under other systems using other proprietary marks, both within and outside the Development Territory;
  • 2.2.4 to purchase or otherwise acquire the assets or controlling ownership of one (1) or more businesses identical or similar to Monical's Restaurants (and/or acquire franchise, license and/or similar agreements for such businesses), some or all of which may be located anywhere, including within the Development Territory. If Franchisor purchases or acquires franchises or licenses, Franchisor may, in its sole discretion, act as franchisor or licensor with respect to such franchisees or licensees wherever located, pursuant to the individual franchise or license agreement(s) between Franchisor and such franchisee(s) or licensee(s). If Franchisor purchases or acquires such businesses within the Development Territory which are not franchised or licensed, Franchisor may, in its sole discretion:

Source: Item 23 — RECEIPTS (FDD pages 46–257)

What This Means (2025 FDD)

According to Monicals Pizza's 2025 Franchise Disclosure Document, Monicals Pizza retains the right to establish or grant to others the right to establish Monical's Restaurants outside of the Development Territory. This means that while a developer is granted rights to develop Monicals Pizza restaurants within a specific Development Territory, Monicals Pizza is not restricted from expanding the franchise network beyond those territories.

This retained right allows Monicals Pizza to pursue growth opportunities in areas not covered by existing development agreements. It also enables them to respond to market demands and strategic priorities without being limited by territorial boundaries granted to developers.

For a prospective Monicals Pizza developer, this clause indicates that their development rights are limited to the defined Development Territory. While they have the opportunity to develop restaurants within that area, they should be aware that Monicals Pizza can expand elsewhere without their involvement. This is a fairly standard practice in franchising, as franchisors typically retain the flexibility to grow the brand as they see fit.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.