After the termination or expiration of the Franchise Agreement, what is the geographic scope of the non-competition covenant for a Monicals Pizza franchise?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | or Other Agreement | Summary |
|---|---|---|
| any business or customer of the franchised | ||
| restaurant to a competitive business or causing | ||
| injury or prejudice to the Marks or the System; | ||
| owning or working for a competitive business (if | ||
| you are a franchisee holding a franchise agreement | ||
| on April 1, 2008 and you own an interest in, | ||
| manage, operate, or perform services for a | ||
| competitive business as of April 1, 2008, you shall | ||
| be permitted to continue to own an interest in, | ||
| manage, operate, or perform services for that/those | ||
| specific competitive business(es) only). | ||
| r. Non-competition covenants after the franchise is terminated or expires | Sections 17.2 | For 2 years after the termination or expiration of the Franchise Agreement, you, your owners (and members of their families and households) and your officers, directors, executives, managers or professional staff are prohibited from: owning or working for a competitive business operating within 25 miles of the franchise location or within the area of primary responsibility (whichever is greater), or within 25 miles of any other Monical's restaurant (if you are a franchisee holding a franchise agreement on April 1, 2008 and you own an interest in, manage, operate, or perform services for a competitive business as of April 1, 2008, you shall be permitted to continue to own an interest in, manage, operate, or perform services for that/those specific competitive business(es) only); or soliciting or influencing any of our customers, employees or business associates to compete with, or terminate their relationship with us or any other Monical's restaurant. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 32–41)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, franchisees are subject to a non-competition covenant for two years after the termination or expiration of their Franchise Agreement. This restriction applies to the franchisee, their owners (including family and household members), and their officers, directors, executives, managers, or professional staff.
During this two-year period, these individuals are prohibited from owning or working for a competitive business. The geographic scope of this restriction extends to a 25-mile radius around the former Monicals Pizza franchise location or within the area of primary responsibility, whichever is greater. Additionally, the non-compete also applies within 25 miles of any other Monicals Pizza restaurant.
However, there is an exception for franchisees who held a franchise agreement on April 1, 2008. If such a franchisee owned an interest in, managed, operated, or performed services for a competitive business as of that date, they are permitted to continue those activities for those specific businesses, despite the general non-compete restrictions. The non-compete also prohibits soliciting or influencing any of Monicals Pizza's customers, employees, or business associates to compete with, or terminate their relationship with Monicals Pizza or any other Monicals Pizza restaurant.