During the term of the relationship with the franchisee and for how long after expiration or termination is the recipient prohibited from diverting business from Monicals Pizza?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
- a) During the term of Recipient's relationship with Franchisee and for a period of two (2) years after the expiration or termination of Recipient's relationship with Franchisee, regardless of the cause of expiration or termination, Recipient 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, divert or attempt to divert any business or customer of Franchisee to any Competitive Business, by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Company's service mark "Monical's Pizza®" and such other trade names, trademarks, service marks, trade dress, designs, graphics, logos, emblems, insignia, fascia, slogans, drawings and other commercial symbols as the Company designates to be used in connection with Monical's Pizza Restaurants or the Company's uniform standards, methods, procedures and specifications for the establishment and operation of Monical's Pizza Restaurants.
- 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.
- c) For a two (2) year period following the term of Individual's relationship with Franchisee, regardless of the cause of termination, 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 within a twenty-five (25) mile radius of Franchisee's Franchised Restaurant or within Franchisee's Area of Primary Responsibility, whichever is greater, or within twenty-five (25) miles of any other Monical's Pizza Restaurant without the express written consent of Franchisee. For purposes of this Agreement, Franchisee's "Area of Primary Responsibility" is defined as:
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 the relationship with the franchisee and for a period of two years after the expiration or termination of the relationship, the recipient is prohibited from diverting business from Monicals Pizza. Specifically, the recipient cannot directly or indirectly divert or attempt to divert any business or customer of the franchisee to any competitive business. This includes actions that could injure or prejudice the goodwill associated with the Monical's Pizza brand, service marks, trade names, trademarks, trade dress, designs, graphics, logos, emblems, insignia, fascia, slogans, drawings and other commercial symbols.
This restriction applies regardless of the cause of the expiration or termination of the franchise agreement. The FDD also states that during the term of the individual's relationship with the franchisee, the individual cannot be involved with any competitive business anywhere in the United States without express written consent from the franchisee. After the relationship ends, this restriction applies within a 25-mile radius of the franchised restaurant or the franchisee's Area of Primary Responsibility, whichever is greater, or within 25 miles of any other Monical's Pizza Restaurant, again without express written consent.
Additionally, during the term of the relationship and for two years after termination, the individual is prohibited from soliciting or attempting to influence any employee or business associate of the franchisee, Monicals Pizza, or any other Monical's Pizza Restaurant to compete against or terminate their relationship with the brand. These restrictions are in place to protect Monicals Pizza's confidential information, trade secrets, and overall business system, and the company can seek injunctive relief in the event of a breach.