For Monicals Pizza, are dealings between the franchisee and the franchisor conducted on an individual capacity?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
"Franchisee" means the individual(s) defined as "Franchisee" in the introductory paragraph of this Agreement and any additional attached list, together with the Franchise Operating Entity, if any, listed in the introductory paragraph and owned and controlled by the listed individual(s);
"Designated Manager" means the Franchisee or if Franchisee is a business entity, the Designated Manager shall be the person designated by Franchisee, or if Franchisee is an individual who dies or becomes incapacitated, that person designated by Franchisee's personal representative, who has primary responsibility for managing the dayto-day affairs of the Franchised Restaurant;
Except as otherwise approved in writing by Franchisor, neither Franchisee, nor any holder of a legal or beneficial interest in Franchisee, nor any officer, director, executive, manager or member of the professional staff of Franchisee, shall, for a period of two (2) years after the expiration or
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 the 2025 Monicals Pizza Franchise Disclosure Document, the definition of "Franchisee" includes both the individual(s) named in the introductory paragraph of the agreement and any Franchise Operating Entity, if applicable, that is owned and controlled by those individuals. This indicates that dealings can be conducted with either the individual franchisee or a business entity they control. The document also defines a "Designated Manager" as the person with primary responsibility for managing the day-to-day affairs of the Franchised Restaurant, whether that person is the franchisee or someone designated by the franchisee (or their personal representative in case of death or incapacitation). This suggests that Monicals Pizza recognizes that the franchisee may not always be the individual directly managing the restaurant.
Furthermore, the FDD states that the franchisee acknowledges that certain restrictions, such as non-compete clauses, are fair and reasonable to protect Monicals Pizza's trade secrets and induce the franchisor to grant the franchise. These restrictions apply not only to the franchisee but also to anyone holding a legal or beneficial interest in the franchisee, as well as officers, directors, executives, managers, or members of the professional staff of the franchisee. This extended reach implies that Monicals Pizza is concerned with the actions of individuals associated with the franchisee's business, not just the franchisee themselves.
In addition, the FDD includes clauses related to the conduct of individuals associated with the franchisee. For example, during the term of an individual's relationship with the franchisee and for a period of two years thereafter, that individual is prohibited from soliciting employees or business associates of the franchisee or Monicals Pizza. This clause highlights that Monicals Pizza places importance on the actions and conduct of individuals connected to the franchisee's business, suggesting that dealings are not strictly limited to the franchisee as an individual but extend to those acting on their behalf or in association with their franchise.