For how long after the termination of a Recipient's relationship with a Monicals Pizza franchisee is the Recipient prohibited from diverting business from the franchisee?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
3. Non-Competition
- a) During the term of Recipient's relationship with Franchisee and for a period of two (2) years after the expiration or termination of Recipient's relationship with Franchisee, regardless of the cause of expiration or termination, Recipient shall not, 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, divert or attempt to divert any business or customer of Franchisee to any Competitive Business, by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Company's service mark "Monical's Pizza®" and such other trade names, trademarks, service marks, trade dress, designs, graphics, logos, emblems, insignia, fascia, slogans, drawings and other commercial symbols as the Company designates to be used in connection with Monical's Pizza Restaurants or the Company's uniform standards, methods, procedures and specifications for the establishment and operation of Monical's Pizza Restaurants.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to the 2025 Monicals Pizza Franchise Disclosure Document, a Recipient is restricted from diverting business or customers from a Monicals Pizza franchisee for a period of two years after the termination or expiration of their relationship. This restriction applies regardless of the reason for the termination or expiration.
Specifically, the Recipient is prohibited from directly or indirectly diverting or attempting to divert any business or customer of the franchisee to any Competitive Business. This includes any action that could harm the goodwill associated with the "Monical's Pizza®" service mark or the company's standards for operating Monicals Pizza restaurants.
This non-compete clause is designed to protect the franchisee's customer base and the Monicals Pizza brand's reputation. It prevents a former Recipient from leveraging their knowledge of the business and customer relationships to unfairly compete with the franchisee immediately after their association ends. This type of restriction is common in franchising to safeguard the investment and goodwill of the existing franchisees and the overall brand.