Can a franchisee terminate the MUDA agreement with Antioch Pizza Shop?
Antioch_Pizza_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in MUDA | Summary | |
|---|---|---|---|
| a. | Length of term of the agreement | Section 4 | Agreement expires on our acceptance and execution of the Franchise Agreement for the last franchise to be developed. |
| b. | Renewal or extension of the term | None | Not applicable |
| c. | Requirements for you to renew or extend | None | Not applicable |
| d. | Termination by you | None | Not applicable, |
| e. | Termination by us without cause | None | Not applicable |
| f. | Termination by us with cause | Section 7 | We can terminate if you commit a listed violation. |
| g. | "Cause" defined - defaults which can be cured | Section 7 | Not applicable |
| h. | "Cause" defined - defaults which cannot be cured | Section 7.2 | Bankruptcy or similar proceeding, failure to comply with development schedule, breach of the agreement, unauthorized transfer, dissolution of Developer or death of owner, breach of franchise agreement and failure to cure. |
| i. | Your obligations on termination/ non-renewal | Section 7.4 | No further right to develop; however, termination does not affect existing franchise agreements. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 41–48)
What This Means (2025 FDD)
According to Antioch Pizza Shop's 2025 Franchise Disclosure Document, a franchisee cannot terminate the Multi-Unit Development Agreement (MUDA). The FDD states that under the provision 'Termination by you' in the MUDA, the summary is 'Not applicable'. This means the agreement does not provide a mechanism for the franchisee to unilaterally terminate the MUDA.
However, Antioch Pizza Shop can terminate the MUDA if the franchisee commits a listed violation, as detailed in Section 7 of the MUDA. These violations, which constitute 'cause' for termination, include defaults that cannot be cured as outlined in Section 7.2. Such defaults include bankruptcy, failure to comply with the development schedule, breach of the agreement, unauthorized transfer, dissolution of the developer, death of the owner, breach of the franchise agreement, and failure to cure such a breach.
Upon termination of the MUDA, the franchisee has no further right to develop additional Antioch Pizza Shop franchises, although the termination does not affect existing franchise agreements. This is detailed in Section 7.4 of the MUDA, outlining the franchisee's obligations upon termination or non-renewal. Prospective franchisees should carefully consider these terms and the circumstances under which Antioch Pizza Shop can terminate the MUDA, as it can significantly impact their development plans and investment.