What action must Monicals Pizza fail to do after receiving written notice of a breach for the franchisee to terminate?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise or Other Agreement | Summary |
|---|---|---|
| a. Length of franchise | Section 4.1 | The initial term is 5 years. |
| term | ||
| b. Renewal or extension of the term | Section 4.2 | You may renew for 3 additional terms of 5 years each. If you fail to meet any one of the conditions in (c) below, we may refuse to renew or extend the terms of your Franchise Agreement. |
| c. Requirements for franchisee to renew or extend | Section 4.2 and Exhibit 6 | You may renew the then current Franchise Agreement if you: have substantially complied with the provisions of the Franchise Agreement; have made capital expenditures as necessary to maintain uniformity with the System; have satisfied all monetary obligations owed to us; are not in default of any provision of the Franchise Agreement or any other agreement between you and us; have given timely written notice of your intent to renew; sign a current Franchise Agreement, which may have materially different terms and conditions than your original Franchise Agreement; comply with current qualifications and training requirements; and sign a General Release in a form satisfactory to us and similar to the General Release attached to the Franchise Agreement. |
| d. Termination by franchisee | Section 16.1 | You may terminate the Franchise Agreement if you are in compliance with it and we materially breach it and we fail to begin to cure our breach within 30 days of receiving your written notice. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 32–41)
What This Means (2025 FDD)
According to the 2025 Monicals Pizza Franchise Disclosure Document, a franchisee can terminate the Franchise Agreement if they are in compliance with the agreement, Monicals Pizza materially breaches it, and Monicals Pizza fails to begin to cure the breach within 30 days of receiving written notice from the franchisee.
This means that a Monicals Pizza franchisee has the right to terminate the agreement if Monicals Pizza violates the terms in a significant way. However, the franchisee must first notify Monicals Pizza in writing of the breach.
Monicals Pizza then has a 30-day window to begin taking action to fix the problem. If Monicals Pizza does not start to cure the breach within this timeframe, the franchisee can then terminate the agreement. This provides a mechanism for franchisees to exit the agreement if Monicals Pizza fails to uphold its obligations, but it also gives Monicals Pizza an opportunity to rectify the situation before termination occurs.