Is a Monicals Pizza franchisee required to provide copies of signed non-disclosure and non-competition agreements to the franchisor upon request?
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. Upon Franchisor's request, Franchisee shall provide Franchisor with copies of all nondisclosure and non-competition agreements signed pursuant to this Section. Such agreements shall remain on file at the offices of Franchisee and are subject to audit or review as otherwise set forth herein. Franchisor shall be a third party beneficiary with the right to enforce covenants contained in such agreements.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to the 2025 Monicals Pizza Franchise Disclosure Document, Monicals Pizza has the right to require a franchisee, any holder of legal or beneficial interest in the franchisee, their immediate families, and any officer, director, executive, manager, member of the professional staff, and all employees to execute a non-disclosure and non-competition agreement. These agreements must be in a form acceptable to Monicals Pizza and substantially similar to the agreement attached as Exhibit 2 in the FDD.
Upon Monicals Pizza's request, the franchisee must provide copies of all signed non-disclosure and non-competition agreements. These agreements must be kept on file at the franchisee's offices and are subject to audit or review. Monicals Pizza is considered a third-party beneficiary and has the right to enforce the covenants within these agreements.
This requirement ensures that Monicals Pizza can protect its trade secrets, confidential information, and system standards by having these agreements in place and accessible. It also allows Monicals Pizza to maintain a consistent level of protection across all franchise locations. For a prospective franchisee, this means they must ensure all relevant parties sign these agreements and be prepared to provide copies to Monicals Pizza upon request, as well as maintain these records for potential audits.