What form does the non-disclosure and non-competition agreement take for a Monicals Pizza franchise?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor has the right to require Franchisee and any holder of a legal or beneficial interest in Franchisee (and any member of their immediate families or households), and any officer, director, executive, manager or member of the professional staff and all employees of Franchisee to execute a nondisclosure and non-competition agreement, in a form acceptable to Franchisor and the same as or substantially similar to the Nondisclosure and Non-Competition Agreement attached as Exhibit 2 ("Nondisclosure and Non-Competition Agreement"), upon execution of this Agreement or prior to each such person's affiliation with Franchisee.
a) Recipient shall not communicate or divulge to (or use for the benefit of) any other person, firm, association, or corporation, with the sole exception of Franchisee, now or at any time in the future, any Trade Secrets or other Confidential Information. At all times from the date of this Agreement, Recipient must take all steps reasonably necessary and/or requested by Franchisee to ensure that the Confidential Information and Trade Secrets are kept confidential pursuant to the terms of this Agreement. Recipient must comply with all applicable policies, procedures and practices that Franchisee has established and may establish from time to time with regard to the Confidential Information and Trade Secrets.
b) Recipient's obligations under paragraph 2(a) of this Agreement shall continue in effect after termination of Recipient's relationship with Franchisee, regardless of the reason or reasons for termination, and whether such termination is voluntary or involuntary, and Franchisee is entitled to communicate Recipient's obligations under this Agreement to any future customer or employer to the extent deemed necessary by Franchisee for protection of its rights hereunder and regardless of whether Recipient or any of its affiliates or assigns becomes an investor, partner, joint venturer, broker, distributor or the like in a Monical's Pizza Restaurant.
a) During the term of Recipient's relationship with Franchisee and for a period of two (2) years after the expiration or termination of Recipient's relationship with Franchisee, regardless of the cause of expiration or termination, Recipient shall not, directly or indirectly, for themselves or through, on behalf of or in conjunction with, any person, persons, partnership, corporation, limited liability company or other business entity, divert or attempt to divert any business or customer of Franchisee to any Competitive Business, by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Company's service mark "Monical's Pizza®" and such other trade names, trademarks, service marks, trade dress, designs, graphics, logos, emblems, insignia, fascia, slogans, drawings and other commercial symbols as the Company designates to be used in connection with Monical's Pizza Restaurants or the Company's uniform standards, methods, procedures and specifications for the establishment and operation of Monical's Pizza Restaurants.
b) During the term of Individual's relationship with Franchisee, Individual shall not, directly or indirectly, for themselves or through, on behalf of or in conjunction with, any person, persons, partnership, corporation, limited liability company or other business entity, carry on, be engaged in or take part in, render services to, or own or share in the earnings of any Competitive Business anywhere within the United States without the express written consent of Franchisee.
c) For a two (2) year period following the term of Individual's relationship with Franchisee, regardless of the cause of termination, Individual shall not, directly or indirectly, for themselves or through, on behalf of or in conjunction with, any person, persons, partnership, corporation, limited liability company or other business entity, carry on, be engaged in or take part in, render services to, or own or share in the earnings of any Competitive Business within a twenty-five (25) mile radius of Franchisee's Franchised Restaurant or within Franchisee's Area of Primary Responsibility, whichever is greater, or within twenty-five (25) miles of any other Monical's Pizza Restaurant without the express written consent of Franchisee.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 31–32)
What This Means (2025 FDD)
According to the 2025 Monicals Pizza Franchise Disclosure Document, the Nondisclosure and Non-Competition Agreement is attached as Exhibit 2 to the Franchise Agreement. Monicals Pizza has the right to require the franchisee, any holder of legal or beneficial interest in the franchisee, their immediate family, and any officer, director, executive, manager, member of the professional staff and all employees of the franchisee to execute this agreement. This agreement must be in a form acceptable to Monicals Pizza and the same as or substantially similar to the agreement attached as Exhibit 2.
The Nondisclosure agreement ensures that recipients of confidential information or trade secrets relating to Monicals Pizza restaurants do not share that information with others, including competitors. This obligation extends beyond the termination of the relationship with the franchisee, regardless of the reason for termination. The franchisee can communicate these obligations to any future customer or employer of the recipient to protect its rights.
The Non-competition aspect of the agreement restricts individuals associated with the Monicals Pizza franchise from engaging in any competitive business that could harm the goodwill associated with Monicals Pizza. During their relationship with the franchisee, individuals are prohibited from being involved with any competitive business anywhere in the United States without express written consent. For a period of two years after the relationship ends, they cannot engage in a competitive business within a 25-mile radius of the Monicals Pizza restaurant or the franchisee's Area of Primary Responsibility, whichever is greater, or within 25 miles of any other Monicals Pizza restaurant, without express written consent.