Does Monicals Pizza reserve the right to establish other franchised or company-owned businesses that may compete with a franchisee's Monicals Pizza restaurant?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. The area that you will receive (called an "area of primary responsibility" or "area") will be described and depicted in a map attached to the Franchise Agreement. We determine the boundaries of the area based on a variety of factors, including population, median population age, proximity to competitors, median income characteristics, proximity to other franchisees and natural, physical or political boundaries.
We reserve the right to establish other franchised or company-owned businesses in your area under other systems using other trademarks at locations inside and outside of your area that may compete with your franchised restaurant. We also reserve the right to establish other channels of distribution for the sale of Monical's Pizza menu items, including Internet sales, catalog sales, telemarketing, or other direct marketing sales while using our principal trademark or any other of our trademarks. These activities may compete with your franchised restaurant. We will not compensate you for any sales made in your area through an alternate channel of distribution. You may not focus your marketing on customers located outside your area of primary responsibility, although you may collect e-mail addresses and cellphone numbers from guests of your restaurants for use in future e-mail or text marketing activities. Any sales you make of any products to be resold will be made only in strict compliance with the provisions of the Confidential Operations Manual. Unless you are advertising cooperatively with another franchisee, you may not advertise in any media primarily circulated within another franchisee's area of primary responsibility without our permission.
Source: Item 12 — TERRITORY (FDD pages 27–28)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, franchisees do not receive an exclusive territory. Monicals Pizza retains the right to establish other franchised or company-owned businesses, even within a franchisee's area, that could compete with their Monicals Pizza restaurant. These businesses may operate under different systems and trademarks.
Monicals Pizza also reserves the right to establish alternative distribution channels, such as internet sales or direct marketing, which may compete with a franchisee's restaurant. Franchisees will not be compensated for sales made through these alternative channels within their area. While franchisees are expected to focus their marketing efforts within their primary area of responsibility, Monicals Pizza can market and sell products and services online using the Monicals Pizza trademarks.
This lack of an exclusive territory and the reservation of rights by Monicals Pizza to establish competing businesses and alternative distribution channels could significantly impact a franchisee's potential revenue and market share. A prospective franchisee should carefully consider the potential for competition from both within and outside the Monicals Pizza franchise system before investing.