What agreement must the transferee, or all holders of interest in the transferee, make regarding the Monicals Pizza Development Agreement?

According to the 2025 Monicals Pizza Franchise Disclosure Document, all holders of a legal or beneficial interest of five percent (5%) or greater in the franchisee must execute and deliver to Monicals Pizza the Unlimited Guaranty and Assumption of Obligations. Through this agreement, these holders agree to assume and fulfill all of the franchisee's obligations under the Franchise Agreement and are held personally liable for them.

This requirement ensures that individuals with a significant financial stake in the Monicals Pizza franchise are personally committed to upholding the terms of the agreement. By signing the Unlimited Guaranty and Assumption of Obligations, these individuals are legally bound to cover the franchisee's debts and responsibilities to Monicals Pizza.

For a prospective Monicals Pizza franchisee, this means that if your ownership structure includes individuals or entities holding 5% or more of the legal or beneficial interest, those individuals or entities will need to be prepared to sign this guarantee. This is a significant commitment, as it puts their personal assets at risk should the franchise fail to meet its obligations. It is important to fully understand the implications of this agreement and seek legal counsel before proceeding with the franchise.