Who is the third-party beneficiary of the nondisclosure and non-competition agreements for a Monicals Pizza franchise?
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 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 30–31)
What This Means (2025 FDD)
According to the 2025 Monicals Pizza Franchise Disclosure Document, the franchisor, Monicals Pizza, is the third-party beneficiary of the nondisclosure and non-competition agreements. This means Monicals Pizza has the right to enforce the covenants within these agreements, protecting their interests and confidential information.
These agreements are required to be executed by 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. The agreements aim to prevent the disclosure of confidential information and restrict involvement in competitive businesses, safeguarding Monicals Pizza's trade secrets and operational methods.
This provision ensures that Monicals Pizza can directly pursue legal action against individuals who violate the terms of the nondisclosure and non-competition agreements, providing an additional layer of protection for the franchise system. Franchisees must maintain copies of these agreements and provide them to Monicals Pizza upon request, subject to audit or review.