What is the exception to the abandonment rule for a Monicals Pizza franchise?

According to the 2025 Monicals Pizza Franchise Disclosure Document, there is an exception to the post-termination covenant not to compete. 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 April 1, 2008, are permitted to continue to own an interest in, manage, operate, or perform services for those specific Competitive Businesses only. This exception applies regardless of the cause of termination of the franchise agreement.

This exception means that certain franchisees who were already involved in a competitive business before a specific date are allowed to continue their involvement even after their Monicals Pizza franchise agreement ends. This is a notable exception to the standard non-compete clauses that typically prevent franchisees from engaging in similar businesses within a certain radius after leaving the franchise system.

For a prospective franchisee, this exception is relevant only if they held a Monicals Pizza franchise agreement on April 1, 2008, and were already involved in a competitive business at that time. If these conditions are met, they would be allowed to continue their involvement in that specific competitive business, even after the termination or expiration of their Monicals Pizza franchise agreement. This could be a significant benefit for those franchisees, as it allows them to maintain existing business interests without violating the non-compete agreement.