What is the duration of the non-competition covenant after the Monicals Pizza franchise is terminated or expires?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | or Other Agreement | Summary |
|---|---|---|
| any business or customer of the franchised | ||
| restaurant to a competitive business or causing | ||
| injury or prejudice to the Marks or the System; | ||
| owning or working for a competitive business (if | ||
| you are a franchisee holding a franchise agreement | ||
| on April 1, 2008 and you own an interest in, | ||
| manage, operate, or perform services for a | ||
| competitive business as of April 1, 2008, you shall | ||
| be permitted to continue to own an interest in, | ||
| manage, operate, or perform services for that/those | ||
| specific competitive business(es) only). | ||
| r. Non-competition covenants after the franchise is terminated or expires | Sections 17.2 | For 2 years after the termination or expiration of the Franchise Agreement, you, your owners (and members of their families and households) and your officers, directors, executives, managers or professional staff are prohibited from: owning or working for a competitive business operating within 25 miles of the franchise location or within the area of primary responsibility (whichever is greater), or within 25 miles of any other Monical's restaurant (if you are a franchisee holding a franchise agreement on April 1, 2008 and you own an interest in, manage, operate, or perform services for a competitive business as of April 1, 2008, you shall be permitted to continue to own an interest in, manage, operate, or perform services for that/those specific competitive business(es) only); or soliciting or influencing any of our customers, employees or business associates to compete with, or terminate their relationship with us or any other Monical's restaurant. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 32–41)
What This Means (2025 FDD)
According to the 2025 Monicals Pizza Franchise Disclosure Document, if the Franchise Agreement is terminated or expires, franchisees, their owners (including family and household members), officers, directors, executives, managers, and professional staff are subject to a non-competition covenant for a period of two years.
During this two-year period, these individuals are prohibited from owning or working for a competitive business. This restriction applies within 25 miles of the former Monicals Pizza franchise location or within the area of primary responsibility, whichever distance is greater. It also extends to within 25 miles of any other Monicals Pizza restaurant. However, there is an exception for franchisees holding a franchise agreement on April 1, 2008, who owned an interest in, managed, operated, or performed services for a competitive business as of that date; they are permitted to continue those activities.
Additionally, the non-competition covenant prohibits franchisees from soliciting or influencing any of Monicals Pizza's customers, employees, or business associates to compete with, or terminate their relationship with, Monicals Pizza or any other Monicals Pizza restaurant. This post-term non-compete is a standard practice in franchising to protect the brand and its existing franchisees from unfair competition from former franchisees who have gained knowledge and experience operating within the Monicals Pizza system.