During the term of an individual's relationship with a franchisee, can the individual be involved with a Competitive Business anywhere in the United States without consent from Monicals Pizza?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
- b) During the term of Individual's relationship with Franchisee, Individual shall not, directly or indirectly, for themselves or through, on behalf of or in conjunction with, any person, persons, partnership, corporation, limited liability company or other business entity, carry on, be engaged in or take part in, render services to, or own or share in the earnings of any Competitive Business anywhere within the United States without the express written consent of Franchisee.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, during the term of an individual's relationship with a franchisee, the individual is restricted from engaging in any Competitive Business anywhere in the United States without obtaining express written consent from the franchisee. A Competitive Business is defined as any business that offers menu items similar to those of Monicals Pizza or could potentially utilize the company's trade secrets or confidential information to the disadvantage of Monicals Pizza, its affiliates, or other franchisees. This restriction is in place to protect Monicals Pizza's market position, trade secrets, and confidential information.
This non-compete clause applies to the individual directly or indirectly, whether acting for themselves or through another entity. This means an individual cannot bypass the restriction by operating through a separate company or in conjunction with others. The clause is designed to prevent any activity that could harm the goodwill associated with the Monicals Pizza brand and its uniform standards.
For a prospective franchisee, this means that any individual involved with the franchisee, such as an owner, officer, director, or manager, must obtain written consent from the franchisee before engaging in a Competitive Business anywhere in the United States during their relationship with the Monicals Pizza franchise. This requirement aims to ensure that individuals associated with the franchise are fully committed to the success of Monicals Pizza and do not divert resources or knowledge to competing ventures. It is important for prospective franchisees to understand the scope of this restriction and ensure that all relevant individuals are aware of and comply with this requirement.
It is important to note that the definition of "Competitive Business" does not include businesses operated by the franchisee under a Franchise Agreement with Monicals Pizza, businesses operated by a publicly-held entity in which the franchisee owns less than 5% legal or beneficial interest, or businesses such as supermarkets, grocery stores, convenience stores, or other retail stores, the primary business of which is not a restaurant.