Will Monicals Pizza compensate me for sales made in my area through alternate channels of distribution?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
We reserve the right to establish other franchised or company-owned businesses in your area under other systems using other trademarks at locations inside and outside of your area that may compete with your franchised restaurant. We also reserve the right to establish other channels of distribution for the sale of Monical's Pizza menu items, including Internet sales, catalog sales, telemarketing, or other direct marketing sales while using our principal trademark or any other of our trademarks. These activities may compete with your franchised restaurant. We will not compensate you for any sales made in your area through an alternate channel of distribution.
Source: Item 12 — TERRITORY (FDD pages 27–28)
What This Means (2025 FDD)
According to the 2025 Monicals Pizza Franchise Disclosure Document, franchisees will not be compensated for sales made in their area through alternate channels of distribution. Monicals Pizza retains the right to establish other channels of distribution, such as internet sales, catalog sales, telemarketing, or other direct marketing sales, using their trademarks. These activities may compete with a franchisee's restaurant.
While franchisees receive an area of primary responsibility, it is not an exclusive territory. Monicals Pizza reserves the right to establish other franchised or company-owned businesses in a franchisee's area under other systems using other trademarks. These businesses, located inside or outside the franchisee's area, may compete with the franchised restaurant.
This lack of compensation for alternate channel sales and the non-exclusive territory arrangement are important considerations for potential franchisees. It means that Monicals Pizza can operate competing sales channels within the franchisee's area without sharing any of the revenue generated through those channels with the franchisee. A prospective franchisee should evaluate the potential impact of these competing channels on their restaurant's profitability.