What obligations does a Monicals Pizza developer have upon termination or expiration of the agreement?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
terminated.
9.2 Amounts Owed to Franchisor
Developer shall immediately pay to Franchisor upon termination or expiration of the Development Agreement any amounts owed by Developer to Franchisor that are then unpaid, plus any interest due.
9.3 Confidential Information
Upon termination or expiration of this Development Agreement, Developer and all of its employees, agents or other representatives shall immediately sign a confidentiality agreement, and will cease to use and maintain the absolute confidentiality of any Trade Secrets and other Confidential Information disclosed or
otherwise learned or acquired by Developer and shall not use such Trade Secrets and other Confidential Information in any other business or venture.
9.4 Covenant Not to Compete
During the term and after the termination of this Development Agreement, Developer and any owner of a five percent (5%) or greater interest in Developer shall be subject to all of the restrictive covenants set forth in Sections 7.3, 7.4 and 17.2 of the Initial Franchise Agreement, which covenants by this reference are incorporated herein.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to the 2025 FDD, a Monicals Pizza developer has several obligations upon termination or expiration of the Development Agreement. The developer must immediately pay any outstanding amounts owed to Monicals Pizza, including any interest due. Additionally, the developer is bound by confidentiality agreements, ensuring that all trade secrets and confidential information acquired during the agreement remain protected and are not used in any other business venture.
Furthermore, the developer and any owner with a five percent or greater interest in the developer are subject to restrictive covenants, as outlined in specific sections of the Initial Franchise Agreement. These covenants, incorporated by reference, likely include non-compete clauses that restrict the developer's ability to engage in similar businesses within a certain timeframe and geographic area.
All obligations of both Monicals Pizza and the developer that, by their nature, are meant to survive the termination or expiration of the Development Agreement will remain in full effect until they are completely fulfilled or naturally expire. This ensures that certain responsibilities and protections continue even after the formal agreement has ended. These continuing obligations provide a framework for both parties to manage the transition and protect their respective interests beyond the agreement's term.