During the term of the Monicals Pizza franchise agreement, are members of the franchisee's immediate family or household permitted to hold an interest in a Competitive Business?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
viduals
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.
7.5 Reasonableness of Restrictions
Franchisee acknowledges that the restrictive covenants contained in this Section are essential elements of this Agreement and that without their inclusion, Franchisor would not have entered into this Agreement. Franchisee 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 Franchisor, the System and the Marks and Franchisee waives any right to challenge these restrictions as being overly broad, unreasonable or otherwise unenforceable.
8.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to the 2025 Monicals Pizza Franchise Disclosure Document, during the term of the franchise agreement, members of the franchisee's immediate family or household are potentially restricted from holding an interest in a Competitive Business. Monicals Pizza has the right to require the franchisee, any holder of legal or beneficial interest in the franchisee (including their immediate families or households), officers, directors, executives, managers, members of the professional staff, and all employees to execute a nondisclosure and non-competition agreement. This agreement is in a form acceptable to Monicals Pizza and is the same as or substantially similar to the Nondisclosure and Non-Competition Agreement attached as an exhibit.
This agreement must be executed upon signing the franchise agreement or before the person's affiliation with the franchisee. Monicals Pizza can request copies of all nondisclosure and non-competition agreements signed, which must be kept on file at the franchisee's offices and are subject to audit or review. Monicals Pizza is considered a third-party beneficiary with the right to enforce the covenants within these agreements.
During the term of the relationship with the franchisee, individuals are prohibited from engaging in or providing services to a Competitive Business anywhere in the United States without express written consent from the franchisee. This restriction extends to any person, partnership, corporation, limited liability company, or other business entity acting directly or indirectly on behalf of the individual. This non-compete obligation ensures that those affiliated with the Monicals Pizza franchise, including family members, do not operate or support competing businesses during their association with the franchise.