How is the Area of Primary Responsibility for a Monicals Pizza franchise determined?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
2.5.3 The map of the Area of Primary Responsibility is:
- 2.5.4 Franchisee's Area of Primary Responsibility does not amount to an exclusive territory. All marketing and direct solicitation efforts shall be focused on Franchisee's Area of Primary Responsibility, subject to Sections 2.7 and 11.5 of this Agreement.
- 2.5.5 Any sales made by Franchisee of any products to be resold shall be made only in strict compliance with the provisions of the Operations Manual.
2.6 Franchisor's Rights
Franchisee acknowledges that except to the extent provided in Section 2.5 above, Franchisor expressly retains all rights and discretion with respect to the Marks and System, including the right to:
2.6.1 establish, own or operate, and license others to establish, own or operate, Monical's Restaurants outside of the Area of Primary Responsibility as Franchisor deems appropriate;
2.6.2 establish, own or operate, and license others to establish, own or operate other businesses under other systems using other trademarks at locations inside and outside of the Area of Primary Responsibility;
2.6.3 purchase or otherwise acquire the assets or controlling ownership of one (1) or more businesses identical or similar to the Franchised Restaurant (and/or acquire franchise, license and/or similar agreements for such businesses), some or all of which may be located anywhere, including within the Area of Primary Responsibility.
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 Area of Primary Responsibility which are not franchised or licensed, Franchisor may, in its sole discretion:
- 2.6.3.1 offer to sell any such businesses to Franchisee or to any third party at the business's fair market value to be operated as a Monical's Restaurant; or
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, the specifics of how the Area of Primary Responsibility is determined are not detailed in the provided excerpts. However, the document does mention that a map of the Area of Primary Responsibility exists.
While the FDD doesn't specify the criteria used to define this area, it does clarify that a franchisee's Area of Primary Responsibility is not an exclusive territory. This means that Monicals Pizza retains the right to establish, own, or license other Monicals Restaurants outside of a franchisee's Area of Primary Responsibility. They can also operate other businesses under different trademarks both inside and outside this area.
Furthermore, Monicals Pizza can acquire businesses similar to the franchised restaurant, even within the Area of Primary Responsibility. In such cases, they may offer to sell these businesses to the franchisee or a third party, or operate them under a different arrangement. The franchisee is expected to focus their marketing efforts within their Area of Primary Responsibility, with some exceptions for cooperative advertising and online media, which has no identifiable geographic boundary.