For a Monicals Pizza Recipient, what is the minimum duration of their obligations after their relationship with the Franchisee Operating Entity ends?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
closure
- a) Recipient shall not communicate or divulge to (or use for the benefit of) any other person, firm, association, or corporation, with the sole exception of Franchisee, now or at any time in the future, any Trade Secrets or other Confidential Information. At all times from the date of this Agreement, Recipient must take all steps reasonably necessary and/or requested by Franchisee to ensure that the Confidential Information and Trade Secrets are kept confidential pursuant to the terms of this Agreement. Recipient must comply with all applicable policies, procedures and practices that Franchisee has established and may establish from time to time with regard to the Confidential Information and Trade Secrets.
- b) Recipient's obligations under paragraph 2(a) of this Agreement shall continue in effect after termination of Recipient's relationship with Franchisee, regardless of the reason or reasons for termination, and whether such termination is voluntary or involuntary, and Franchisee is entitled to communicate Recipient's obligations under this Agreement to any future customer or employer to the extent deemed necessary by Franchisee for protection of its rights hereunder and regardless of whether Recipient or any of its affiliates or assigns becomes an investor, partner, joint venturer, broker, distributor or the like in a Monical's Pizza Restaurant.
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.
- b) During the term of Individual's relationship with Franchisee, Individual 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, carry on, be engaged in or take part in, render services to, or own or share in the earnings of any Competitive Business anywhere within the United States without the express written consent of Franchisee.
- c) For a two (2) year period following the term of Individual's relationship with Franchisee, regardless of the cause of termination, Individual 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, carry on, be engaged in or take part in, render services to, or own or share in the earnings of any Competitive Business within a twenty-five (25) mile radius of Franchisee's Franchised Restaurant or within Franchisee's Area of Primary Responsibility, whichever is greater, or within twenty-five (25) miles of any other Monical's Pizza Restaurant without the express written consent of Franchisee.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, a Recipient has ongoing obligations after their relationship with the Franchisee ends. Specifically, the Recipient is bound by confidentiality and non-disclosure obligations indefinitely, meaning these continue in effect after the termination of their relationship with the Franchisee, regardless of the reason for termination, whether voluntary or involuntary. The Franchisee can also communicate these obligations to any future customer or employer of the Recipient to protect its rights.
In addition to confidentiality, the Recipient is subject to a non-competition agreement. During the term of the Recipient's relationship with the Franchisee and for two years after the relationship ends, the Recipient cannot divert or attempt to divert any business or customer of the Franchisee to any Competitive Business. They also cannot perform any act that is injurious or prejudicial to the goodwill associated with the "Monical's Pizza®" service mark.
Furthermore, for a two-year period following the end of the Recipient's relationship with the Franchisee, the Recipient cannot engage in any Competitive Business within a 25-mile radius of the Franchisee's Franchised Restaurant or within the Franchisee's Area of Primary Responsibility, whichever is greater, or within 25 miles of any other Monical's Pizza Restaurant without express written consent from the Franchisee. The Recipient also cannot solicit or attempt to induce any employee or business associate of the Franchisee, Monicals Pizza, or any other Monicals Pizza Restaurant to compete against or terminate their relationship with the Franchisee, Monicals Pizza, or any other Monicals Pizza Restaurant for a period of two years after the relationship ends.