What right does a Monicals Pizza franchisee waive regarding the restrictive covenants in the franchise agreement?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Recipient acknowledges that each of the terms set forth herein, including the restrictive covenants, is fair and reasonable and is reasonably required for the protection of Franchisee, Company, and Company's Trade Secrets and other Confidential Information, the Company's business system, network of franchises and trade and service marks, and Recipient waives any right to challenge these restrictions as being overly broad, unreasonable or otherwise unenforceable. If, however, a court of competent jurisdiction determines that any such restriction is unreasonable or unenforceable, then Recipient shall submit to the reduction of any such activity, time period or geographic restriction necessary to enable the court to enforce such restrictions to the fullest extent permitted under applicable law. It is the desire and intent of the parties that the provisions of this Agreement shall be enforced to the fullest extent permissible under the laws and public policies applied in any jurisdiction where enforcement is sought.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to the 2025 Monicals Pizza Franchise Disclosure Document, franchisees acknowledge that the restrictive covenants within the agreement are fair and reasonably necessary to protect Monicals Pizza's interests, including trade secrets, confidential information, the business system, the franchise network, and trademarks.
Specifically, a franchisee waives the right to challenge these restrictions as overly broad, unreasonable, or unenforceable. This means that a franchisee agrees not to legally dispute the scope or validity of the non-compete and non-solicitation clauses included in the franchise agreement.
However, if a court determines that any restriction is indeed unreasonable or unenforceable, the franchisee agrees to accept a reduction of the restriction to the extent necessary for the court to enforce it under applicable law. The intention is for the provisions of the agreement to be enforced to the fullest extent permissible by law.