What is the geographic radius around a Monicals Pizza franchised restaurant within which an individual is restricted from engaging in a Competitive Business after termination?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
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
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, franchisees and certain related parties are restricted from involvement with a Competitive Business for two years after the franchise agreement terminates or expires. This restriction applies within a 25-mile radius of the franchisee's Approved Location or within the Area of Primary Responsibility, whichever is greater. It also extends to a 25-mile radius of any other Monicals Pizza Restaurant existing at the time of termination that is either owned by or affiliated with Monical Pizza Corporation.
This post-termination covenant not to compete prevents former franchisees from leveraging Monicals Pizza's trade secrets, confidential information, and training to benefit a competing business. It also protects Monicals Pizza's customer base and market position by preventing former franchisees from directly competing in close proximity to existing locations.
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. These franchisees are permitted to continue their involvement with those specific Competitive Businesses, despite the general non-compete restrictions.
For a prospective Monicals Pizza franchisee, this means that upon leaving the system, they will be limited in their ability to operate or be involved with a competing pizza business within the specified geographic areas. It is important to understand the scope of the Area of Primary Responsibility and the locations of other Monicals Pizza restaurants to fully grasp the extent of this restriction.