factual

What is the radius around any other Monicals Pizza restaurant within which an individual is restricted from engaging in a Competitive Business after termination?

Monicals_Pizza Franchise · 2025 FDD

Answer 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, a franchisee is restricted from engaging in a Competitive Business within a twenty-five (25) mile radius of the location of any other Monical's Restaurant. This restriction applies to restaurants either owned by or affiliated with Monical Pizza Corporation that are in existence at the time of termination or expiration of the franchise agreement. The restriction is in place for a period of two (2) years after the expiration or termination of the agreement, regardless of the cause of termination.

This non-compete clause is designed to protect Monicals Pizza's trade secrets, confidential information, and investment in franchisee training. It prevents former franchisees from leveraging the knowledge and experience gained while operating a Monicals Pizza restaurant to directly compete with the brand. The clause also aims to protect the customer base and goodwill that Monicals Pizza has established.

However, there is an exception for franchisees holding a franchise agreement on April 1, 2008. If these franchisees owned an interest in, managed, operated, or performed services for a Competitive Business as of that date, they are permitted to continue those activities. This exception applies only to those specific Competitive Businesses that were already in operation as of April 1, 2008.

This restriction is in place to protect Monicals Pizza, its affiliates, and its other franchisees. A "Competitive Business" is defined as any business that offers menu items the same as or similar to those provided by Monical's Restaurants or in which Trade Secrets or other Confidential Information could be used to the disadvantage of Franchisor, any Affiliate or its other franchisees.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.