Does Monicals Pizza require a nondisclosure and non-competition agreement as part of its franchise agreement exhibits?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
7.4 Nondisclosure and Non-Competition Agreements with Certain Individuals
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.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, a Nondisclosure and Non-Competition Agreement is included as Exhibit 2 to the franchise agreement. Furthermore, Monicals Pizza has the right to require the franchisee, any holder of legal or beneficial interest in the franchisee (including family members), and any officer, director, executive, manager, professional staff, and all employees to execute such an agreement. This agreement must be in a form acceptable to Monicals Pizza and substantially similar to the one attached as Exhibit 2.
Monicals Pizza requires that these individuals sign the agreement upon execution of the Franchise Agreement or before their affiliation with the franchisee. The franchisee must provide Monicals Pizza with copies of all signed agreements, which are to be kept on file and are subject to audit or review. Monicals Pizza is considered a third-party beneficiary and has the right to enforce the covenants within these agreements.
The non-competition terms extend both during the relationship with the franchisee and for a period of two years after its expiration or termination. During this time, the individual is prohibited from diverting business or customers to any competitive business or engaging in any action that could harm the goodwill associated with Monicals Pizza. They are also restricted from being involved with any Competitive Business within a 25-mile radius of the franchised restaurant or any other Monicals Pizza Restaurant, or within the franchisee's Area of Primary Responsibility, whichever is greater, without express written consent.