Does Monicals Pizza require a nondisclosure and non-competition agreement from franchisees?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor has the right to require Franchisee and any holder of a legal or beneficial interest in Franchisee (and any member of their immediate families or households), and any officer, director, executive, manager or member of the professional staff and all employees of Franchisee to execute a nondisclosure and non-competition agreement, in a form acceptable to Franchisor and the same as or substantially similar to the Nondisclosure and Non-Competition Agreement attached as Exhibit 2 ("Nondisclosure and Non-Competition Agreement"), upon execution of this Agreement or prior to each such person's affiliation with Franchisee. Upon Franchisor's request, Franchisee shall provide Franchisor with copies of all nondisclosure and non-competition agreements signed pursuant to this Section. Such agreements shall remain on file at the offices of Franchisee and are subject to audit or review as otherwise set forth herein. Franchisor shall be a third party beneficiary with the right to enforce covenants contained in such agreements.
7.5 Reasonableness of Restrictions
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, Monicals Pizza has the right to require franchisees, holders of legal or beneficial interest in the franchisee (including their immediate families or households), officers, directors, executives, managers, professional staff, and all employees to execute a nondisclosure and non-competition agreement. This agreement must be in a form acceptable to Monicals Pizza and substantially similar to the Nondisclosure and Non-Competition Agreement attached as Exhibit 2.
Monicals Pizza can request these agreements upon the execution of the Franchise Agreement or before a person's affiliation with the franchisee. The franchisee must provide copies of these signed agreements to Monicals Pizza upon request, and these agreements must be kept on file at the franchisee's office for auditing or review. Monicals Pizza is considered a third-party beneficiary and has the right to enforce the covenants within these agreements.
These non-compete agreements also extend to the time during the Recipient's relationship with the franchisee and for two years after the relationship ends. During this time, the Recipient cannot divert business or customers from the franchisee to any Competitive Business or perform any act that is harmful to the goodwill associated with the "Monical's Pizza®" service mark. The individual is also prohibited from engaging in any Competitive Business anywhere in the United States during their relationship with the franchisee, without express written consent.
For a two-year period after the relationship, the individual cannot participate in a Competitive Business within a twenty-five (25) mile radius of the franchisee's restaurant, the Area of Primary Responsibility, or within twenty-five (25) miles of any other Monicals Pizza Restaurant, without written consent. Additionally, during and for two years after their relationship with the franchisee, the individual cannot solicit or attempt to influence 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.