If Monicals Pizza acquires a business similar to a Monicals Pizza restaurant, can it be located anywhere?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
h within and outside the Development Territory;
2.2.4 to purchase or otherwise acquire the assets or controlling ownership of one (1) or more businesses identical or similar to Monical's Restaurants (and/or acquire franchise, license and/or similar agreements for such businesses), some or all of which may be located anywhere, including within the Development Territory. If Franchisor purchases or acquires franchises or licenses, Franchisor may, in its sole discretion, act as franchisor or licensor with respect to such franchisees or licensees wherever located, pursuant to the individual franchise or license agreement(s) between Franchisor and such franchisee(s) or licensee(s). If Franchisor purchases or acquires such businesses within the Development Territory which are not franchised or licensed, Franchisor may, in its sole discretion:
2.2.4.1 to offer to sell any such businesses to Developer or to any third party at the business's fair market value to be operated as an Monical's Restaurant; or
2.2.4.2 to offer Developer the opportunity to operate such business(s) in partnership with Franchisor (or an Affiliate) under the business(s) existing trade name or a different trade name.
- 2.2.5 to be acquired (regardless of the form of transaction) by any business, even if the other business operates, franchises and/or licenses Competitive Businesses within the Development Territory; and
- 2.2.6 to engage in any activities not expressly forbidden by this Development Agreement.
3. DEVELOPMENT FEE AND FRANCHISE FEES
3.1 Franchise Fees
Simultaneously, with the execution of this Development Agreement, Developer shall execute the Initial Franchise Agreement and shall pay a Franchise Fee of THIRTY THOUSAND DOLLARS ($30,000.00) for the first Monical's Restaurant to be developed pursuant to this Development Agreement. Developer shall execute Franchise Agreements for the additional Monical's Restaurants to be developed on a periodic basis, and shall pay a Franchise Fee of THIRTY THOUSAND DOLLARS ($30,000.00) for each additional Monical's Restaurant upon execution of each additional Franchise Agreement.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, Monicals Pizza retains the right to purchase or acquire assets or controlling ownership of businesses identical or similar to Monicals Pizza restaurants. These acquired businesses can be located anywhere, including within a franchisee's Development Territory or Area of Primary Responsibility.
If Monicals Pizza acquires franchises or licenses, it has the discretion to act as the franchisor or licensor for these franchisees or licensees, regardless of their location, under the existing franchise or license agreements. If Monicals Pizza acquires such businesses within a franchisee's Area of Primary Responsibility that are not already franchised or licensed, Monicals Pizza has the option to offer the existing franchisee the opportunity to purchase the business at fair market value to operate as a Monicals Pizza restaurant, or offer the franchisee the opportunity to operate the business in a business entity or arrangement with Monicals Pizza or an affiliate.
This clause in the franchise agreement means that a Monicals Pizza franchisee's territory is not necessarily exclusive. Monicals Pizza retains considerable flexibility to expand its presence, even within a franchisee's territory, through acquisitions. For a prospective franchisee, this highlights the importance of carefully evaluating the market and competitive landscape within their Area of Primary Responsibility, as Monicals Pizza could potentially establish additional locations through acquisition.