For how long after the expiration of a Monicals Pizza franchise agreement are franchisees restricted by the non-compete clause?
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 Monicals Pizza's 2025 Franchise Disclosure Document, franchisees are subject to a non-compete clause for a period of two years after the expiration or termination of their franchise agreement. This restriction applies regardless of the reason for the termination.
During this two-year period, franchisees, along with anyone holding a legal or beneficial interest in the franchise, or any officer, director, executive, manager, or member of the professional staff, are prohibited from owning an interest in, managing, operating, or providing services to any Competitive Business. This restriction applies within a twenty-five (25) mile radius of the Approved Location or within the Area of Primary Responsibility, whichever is greater. It also extends to within a twenty-five (25) mile radius of any other Monicals Pizza Restaurant existing at the time of termination or expiration.
Additionally, franchisees are prohibited from soliciting or attempting to influence any customer, employee, or other business associate of Monicals Pizza to terminate or modify their business relationship with Monicals Pizza or any Monicals Pizza Restaurant, or to compete against them. However, franchisees who held a franchise agreement on April 1, 2008, and who owned an interest in, managed, operated, or performed services for a Competitive Business as of that date, are permitted to continue those activities with those specific businesses.
These restrictions are designed to protect Monicals Pizza's trade secrets, confidential information, investment in franchisee training, and customer relationships. Franchisees acknowledge that these restrictions are fair and reasonable and are justifiably required for these protections.