Can Antioch Pizza Shop terminate the MUDA agreement without cause?
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. |
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, Antioch Pizza Shop can not terminate the MUDA (Multi-Unit Development Agreement) without cause. The terms of the MUDA agreement state that Antioch Pizza Shop can only terminate the agreement if the developer commits a violation that is listed in Section 7 of the MUDA.
Section 7.2 of the MUDA outlines specific defaults that cannot be cured, which would allow Antioch Pizza Shop to terminate the agreement. These defaults include events such as bankruptcy or similar proceedings, failure to comply with the development schedule, breach of the agreement, unauthorized transfer, dissolution of the Developer or death of owner, breach of franchise agreement and failure to cure.
It is important for a prospective franchisee to understand the conditions under which the MUDA can be terminated, as this dictates the security and obligations of the development agreement. Franchisees should carefully review Section 7 and 7.2 of the MUDA to fully understand their responsibilities and the circumstances that could lead to termination. This ensures that they are aware of the potential risks and can take steps to avoid defaults that could jeopardize their development rights.