How does Monicals Pizza determine the boundaries of my area of primary responsibility?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. The area that you will receive (called an "area of primary responsibility" or "area") will be described and depicted in a map attached to the Franchise Agreement. We determine the boundaries of the area based on a variety of factors, including population, median population age, proximity to competitors, median income characteristics, proximity to other franchisees and natural, physical or political boundaries.
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. You may not focus your marketing on customers located outside your area of primary responsibility, although you may collect e-mail addresses and cellphone numbers from guests of your restaurants for use in future e-mail or text marketing activities. Any sales you make of any products to be resold will be made only in strict compliance with the provisions of the Confidential Operations Manual. Unless you are advertising cooperatively with another franchisee, you may not advertise in any media primarily circulated within another franchisee's area of primary responsibility without our permission.
Source: Item 12 — TERRITORY (FDD pages 27–28)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, franchisees do not receive an exclusive territory. Instead, they are granted an area of primary responsibility. The boundaries of this area are determined by Monicals Pizza based on several factors. These factors include population, median population age, proximity to competitors, median income characteristics, proximity to other franchisees, and natural, physical, or political boundaries. The specific area will be described and depicted in a map attached to the Franchise Agreement.
This means that while franchisees are expected to focus their marketing efforts within their area of primary responsibility, Monicals Pizza retains the right to establish other franchised or company-owned businesses, even those that compete with the franchisee's restaurant, inside or outside of this area. They also reserve the right to use other channels of distribution, such as internet sales or telemarketing, which may also compete with the franchisee. Franchisees will not be compensated for any sales made in their area through these alternate channels.
Furthermore, franchisees are restricted from focusing their marketing efforts on customers outside their designated area, unless advertising cooperatively with another franchisee or with the permission of Monicals Pizza. This arrangement highlights the importance of understanding the specific boundaries and competitive landscape within the assigned area of primary responsibility, as well as the potential for competition from both within and outside the Monicals Pizza franchise system.