Does a Monicals Pizza franchisee waive the right to challenge the restrictive covenants in the franchise agreement as overly broad or unenforceable?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
ictions
Recipient acknowledges that each of the terms set forth herein, including the restrictive covenants, is fair and reasonable and is reasonably required for the protection of Franchisee, Company, and Company's Trade Secrets and other Confidential Information, the Company's business system, network of franchises and trade and service marks, and Recipient waives any right to challenge these restrictions as being overly broad, unreasonable or otherwise unenforceable. If, however, a court of competent jurisdiction determines that any such restriction is unreasonable or unenforceable, then Recipient shall submit to the reduction of any such activity, time period or geographic restriction necessary to enable the court to enforce such restrictions to the fullest extent permitted under applicable law. It is the desire and intent of the parties that the provisions of this Agreement shall be enforced to the fullest extent permissible under the laws and public policies applied in any jurisdiction where enforcement is sought.
5. Relief for Breaches of Confidentiality, Non-Solicitation and Non-Competition
Recipient further acknowledges that an actual or threatened violation of the covenants contained in this Agreement will cause Franchisee and Company immediate and irreparable harm, damage and injury that cannot be fully compensated for by an award of damages or other remedies at law. Accordingly, Franchisee and Company shall be entitled, as a matter of right, to an injunction from any court of competent jurisdiction restraining any further violation by Recipient of this Agreement without any requirement to show any actual damage or to post any bond or other security. Such right to an injunction shall be cumulative and in addition to, and not in limitation of, any other rights and remedies that Franchisee and Company may have at law or in equity.
6.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, franchisees acknowledge that the restrictive covenants within the franchise agreement are fair and reasonable. As a result, the franchisee waives their right to challenge these restrictions, deeming them not overly broad, unreasonable, or unenforceable. This waiver is designed to protect Monicals Pizza's trade secrets, confidential information, business system, franchise network, and trademarks.
However, if a court determines that any restriction is indeed unreasonable or unenforceable, the franchisee must agree to a reduction in the scope of the restriction. This ensures the restriction is enforceable to the fullest extent permitted by law. The intent is for the provisions of the agreement to be upheld as much as possible under the applicable laws and public policies of the jurisdiction where enforcement is sought.
Monicals Pizza also states that any violation of the confidentiality, non-solicitation, and non-competition covenants will cause immediate and irreparable harm to the franchisor. Therefore, Monicals Pizza is entitled to an injunction from a court, preventing further violations without needing to demonstrate actual damages or post a bond. This right to an injunction is in addition to any other legal or equitable remedies available to Monicals Pizza.