How does the addendum modify Section 8 of the Monicals Pizza Area Development Agreement regarding termination?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
| between Monical Pizza Corporation and | This Addendum to the Area Development Agreement is agreed to this day of, 20, by and | |
|---|---|---|
| 1. | In recognition of the requirements of New York's General Business Law, Article 33, §§680 through | |
| 695, the Area Development Agreement for Monical Pizza Corporation is amended as follows: | ||
| | Section 7.1 of the Area Development Agreement is amended to provide that Franchisor will | |
| not transfer and assign its rights and obligations under the Area Development Agreement | ||
| unless the transferee will be able to perform the Franchisor's obligations under the Area | ||
| Development Agreement, in Franchisor's good faith judgment, so long as it remains subject | ||
| to Article 33 of the General Business Law of the State of New York. | ||
| | No provision in the Area Development Agreement shall be construed as requiring Developer | |
| General Business Law of the State of New York. | to waive any right conferred upon the Developer by the provisions of Article 33 of the | |
| | Section 8 of the Area Development Agreement is amended to provide that the Developer may | |
| terminate the Area Development Agreement on any grounds available by law. | ||
| 2. | or exhibits or attachments thereto, the terms of this Addendum shall govern. | Each provision of this Addendum shall be effective only to the extent that the jurisdictional |
| requirements of the New York Law applicable to the provisions are met independently of this Addendum. To the extent | ||
| this Addendum shall be deemed to be inconsistent with any terms or conditions of said Area Development Agreement | ||
| understands and consents to be bound by all of its terms. | IN WITNESS WHEREOF, each of the undersigned hereby acknowledges having read this Addendum and | |
| MONICAL PIZZA CORPORATION: | Developer: |
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to the 2025 Monicals Pizza Franchise Disclosure Document, the addendum modifies Section 8 of the Area Development Agreement in specific instances related to state laws. For developers in New York, the addendum stipulates that they may terminate the Area Development Agreement on any grounds available by law. This modification ensures that the developer retains all rights conferred by Article 33 of New York's General Business Law.
For developers in Hawaii, the addendum clarifies that if Section 8 of the Area Development Agreement is inconsistent with the Hawaii Franchise Investment Law regarding non-renewal, termination, and transfer, the Hawaii Franchise Investment Law will take precedence. This ensures that Monicals Pizza's franchise operations comply with Hawaii's specific regulations concerning franchise agreements.
In Indiana, the addendum amends Section 8 to prevent Monicals Pizza from unilaterally terminating a franchise unless there is a material violation of the Area Development Agreement, and the termination is not made in bad faith. This change aims to protect the developer from arbitrary or unfair termination by Monicals Pizza, aligning with the Indiana Deceptive Franchise Practices Law. These addenda collectively reflect Monicals Pizza's effort to comply with various state franchise laws, providing additional protections and rights to developers in those states.