Who may be required to sign nondisclosure and non-competition agreements for a Monicals Pizza franchise?
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.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 30–31)
What This Means (2025 FDD)
According to the 2025 Monicals Pizza Franchise Disclosure Document, Monicals Pizza has the right to require that franchisees and certain other individuals sign a nondisclosure and non-competition agreement. These individuals include anyone holding a legal or beneficial interest in the franchisee, along with members of their immediate families or households.
Additionally, Monicals Pizza may require officers, directors, executives, managers, members of the professional staff, and all employees of the franchisee to sign these agreements. The agreement must be in a form acceptable to Monicals Pizza and substantially similar to the sample agreement included as Exhibit 2 in the FDD.
These agreements must be executed upon signing the Franchise Agreement or before the individual's affiliation with the franchisee. Franchisees are required to provide Monicals Pizza with copies of all signed agreements, which must 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, ensuring the protection of their confidential information and business interests.