Does Monicals Pizza have the right to require certain individuals to execute a Nondisclosure and Non-Competition Agreement?
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 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to the 2025 Monicals Pizza Franchise Disclosure Document, Monicals Pizza has the right to require certain individuals to execute a Nondisclosure and Non-Competition Agreement. Specifically, Monicals Pizza can require the franchisee, any holder of legal or beneficial interest in the franchisee (including their immediate families or households), and any officer, director, executive, manager, member of the professional staff, and all employees of the franchisee to sign such an agreement.
The Nondisclosure and Non-Competition Agreement must be in a form acceptable to Monicals Pizza and substantially similar to the agreement attached as Exhibit 2 in the FDD. This agreement must be executed upon signing the Franchise Agreement or before the individual's affiliation with the franchisee.
Monicals Pizza retains the right to enforce these agreements as a third-party beneficiary. Franchisees are required to keep copies of all signed agreements on file and make them available for audit or review. This ensures Monicals Pizza can protect its confidential information, trade secrets, and overall business system by preventing unauthorized use or disclosure by individuals associated with the franchise.