After the Monicals Pizza franchise agreement terminates, for how long is the franchisee restricted from engaging in a competitive business?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
- 17.2.2 Except as otherwise approved in writing by Franchisor, neither Franchisee, nor any holder of a legal or beneficial interest in Franchisee, nor any officer, director, executive, manager or member of the professional staff of Franchisee, shall, for a period of two (2) years after the expiration or
termination of this Agreement, regardless of the cause of termination, either 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:
17.2.2.1 own an interest in, manage, operate or provide services to any Competitive Business, whether directly or indirectly, located or operating (a) within a twenty-five (25) mile radius of the Approved Location or within the Area of Primary Responsibility (whichever is greater), or (b) within a twenty-five (25) mile radius of the location of any other Monical's Restaurant, either owned by or affiliated with Monical Pizza Corporation in existence at the time of termination or expiration (franchisees holding a franchise agreement on April 1, 2008 who own an interest in, manage, operate, or perform services for a Competitive Business as of April 1, 2008 shall be permitted to continue to own an interest in, manage, operate, or perform services for that/those specific Competitive Business(es) only); or
17.2.2.2 solicit or otherwise attempt to induce or influence any customer, employee or other business associate of Franchisor to terminate or modify his, her or its business relationship with Franchisor or any Monical's Restaurant, or to compete against Franchisor or any Monical's Restaurant.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to the 2025 Monicals Pizza Franchise Disclosure Document, a franchisee faces certain restrictions regarding competitive business activities for a period of two years after the termination or expiration of the franchise agreement. This restriction applies regardless of the reason for termination.
Specifically, the franchisee (or any party with an interest in the franchise) cannot own, manage, operate, or provide services to a Competitive Business within a 25-mile radius of the Monicals Pizza location or within the Area of Primary Responsibility, whichever is greater. This restriction also extends to a 25-mile radius of any other Monicals Pizza restaurant existing at the time of termination or expiration. However, there is an exception for franchisees who held a franchise agreement on April 1, 2008, and were already involved in a Competitive Business as of that date; they are permitted to continue their involvement with those specific businesses.
Additionally, the franchisee is prohibited from soliciting or attempting to influence any customer, employee, or business associate of Monicals Pizza to terminate or modify their relationship with the company or any Monicals Pizza restaurant, or to compete against them. These post-termination covenants are designed to protect Monicals Pizza's trade secrets, confidential information, and investment in franchisee training, as well as to maintain the integrity of the Monicals Pizza brand and network.