Can Monicals Pizza establish restaurants outside of the Area of Primary Responsibility?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges that except to the extent provided in Section 2.5 above, Franchisor expressly retains all rights and discretion with respect to the Marks and System, including the right to:
2.6.1 establish, own or operate, and license others to establish, own or operate, Monical's Restaurants outside of the Area of Primary Responsibility as Franchisor deems appropriate;
2.6.2 establish, own or operate, and license others to establish, own or operate other businesses under other systems using other trademarks at locations inside and outside of the Area of Primary Responsibility;
2.6.3 purchase or otherwise acquire the assets or controlling ownership of one (1) or more businesses identical or similar to the Franchised Restaurant (and/or acquire franchise, license and/or similar agreements for such businesses), some or all of which may be located anywhere, including within the Area of Primary Responsibility.
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 Area of Primary Responsibility which are not franchised or licensed, Franchisor may, in its sole discretion:
- 2.6.3.1 offer to sell any such businesses to Franchisee or to any third party at the business's fair market value to be operated as a Monical's Restaurant; or
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, Monicals Pizza retains the right to establish Monicals Restaurants outside of a franchisee's Area of Primary Responsibility. This means that while a franchisee is expected to focus their marketing efforts within their designated area, Monicals Pizza can open or license others to open Monicals Pizza restaurants outside of that area as they see fit. This is a fairly standard practice in franchising, as it allows the franchisor to grow the brand strategically.
Monicals Pizza also retains the right to establish other businesses under different trademarks, both inside and outside the Area of Primary Responsibility. They can also purchase or acquire businesses similar to Monicals Pizza, regardless of location. If Monicals Pizza acquires businesses within a franchisee's Area of Primary Responsibility that are not already franchised, they may offer to sell those businesses to the franchisee or a third party, or offer the franchisee an opportunity to operate the business in partnership with Monicals Pizza.
These retained rights give Monicals Pizza significant control over the brand's expansion and market presence. A prospective franchisee should consider that their Area of Primary Responsibility is not an exclusive territory and that Monicals Pizza has the authority to make decisions that could impact the franchisee's business, such as opening additional locations nearby or introducing competing brands. It is important for potential franchisees to fully understand these terms and how they might affect their investment and business operations.