Does the Monicals Pizza Development Agreement specify any rights retained by the franchisor?
Monicals_Pizza Franchise · 2025 FDDAnswer 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 the 2025 Monicals Pizza Franchise Disclosure Document, the franchisor retains specific rights under the Development Agreement. So long as the Development Agreement is active and the developer is not in default, Monicals Pizza will not establish, own, operate, or license others to do the same within the Development Territory, except for the developer. However, Monicals Pizza retains the right to continue operating existing Monicals Pizza restaurants within the Development Territory as of the agreement date, and allow others to do so as well.
Monicals Pizza also reserves the right to establish or grant others the right to establish Monicals Pizza restaurants outside the Development Territory. They can also establish and operate businesses under other systems using different proprietary marks, both within and outside the Development Territory.
Furthermore, Monicals Pizza maintains the right to purchase or acquire businesses similar to Monicals Pizza restaurants, including their franchises or licenses, which may be located anywhere, including within the Development Territory. If Monicals Pizza acquires franchises or licenses, they can act as the franchisor or licensor for these franchisees or licensees. If they acquire non-franchised businesses within the Development Territory, Monicals Pizza has the discretion to operate them as they see fit.