Under what circumstances can Monicals Pizza communicate the recipient's obligations regarding Confidential Information and Trade Secrets to a future customer or employer?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
- b) Recipient's obligations under paragraph 2(a) of this Agreement shall continue in effect after termination of Recipient's relationship with Franchisee, regardless of the reason or reasons for termination, and whether such termination is voluntary or involuntary, and Franchisee is entitled to communicate Recipient's obligations under this Agreement to any future customer or employer to the extent deemed necessary by Franchisee for protection of its rights hereunder and regardless of whether Recipient or any of its affiliates or assigns becomes an investor, partner, joint venturer, broker, distributor or the like in a Monical's Pizza Restaurant.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to the 2025 Monicals Pizza Franchise Disclosure Document, Monicals Pizza is entitled to communicate a recipient's obligations regarding confidential information and trade secrets to any future customer or employer. This communication is permissible to the extent deemed necessary by Monicals Pizza for the protection of its rights under the agreement. This entitlement exists regardless of whether the recipient or any of its affiliates or assigns becomes an investor, partner, joint venturer, broker, distributor, or the like in a Monical's Pizza Restaurant.
This clause ensures that Monicals Pizza can actively protect its confidential information and trade secrets by informing third parties of the recipient's ongoing obligations, even after their relationship with the franchisee has ended. The discretion lies with Monicals Pizza to determine the extent of communication necessary to safeguard its rights.
For a prospective franchisee, this means that their obligations regarding confidentiality and trade secrets are not only ongoing but also subject to potential disclosure to future employers or customers if Monicals Pizza deems it necessary to protect its interests. This provision underscores the importance of understanding and adhering to the confidentiality terms outlined in the franchise agreement, as any breach could have implications beyond the immediate relationship with Monicals Pizza.