What is amended in Section 13.7 of the Monicals Pizza Area Development Agreement regarding arbitration for Monicals Pizza?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
| 1. | Development Agreement for Monical Pizza Corporation is amended as follows: | In recognition of the requirements of the California Franchise Investment Law, Cal. Corp. Code | |
|---|---|---|---|
| §§31000-3516 and the California Franchise Relations Act, Cal. Bus. And Prof. Code §§20000-20043, the Area | |||
| and non-renewal. | Section 8 of the Area Development Agreement contains provisions concerning termination If these provisions are inconsistent with California Business and Professions Code Sections 2000 through 20043, California law will control. | ||
| | Section 9.4 of the Area Development Agreement contains a covenant not to compete that | ||
| covenant may not be enforceable under California law. | extends beyond the expiration or termination of the Area Development Agreement; this | ||
| | The Area Development Agreement may require litigation to be conducted in a court located | ||
| action arising under California law. | outside of the State of California. This provision might not be enforceable for any cause of | ||
| | The Area Development Agreement requires application of the laws of a state other than | ||
| California. This provision might not be enforceable under California law. | |||
| Agreement restricting venue to a forum outside of the State of California. | Section 13.7 of the Area Development Agreement requires binding arbitration. arbitration shall occur at the forum indicated in Section 13.7. Prospective developers are encouraged to consult legal counsel to determine the applicability of California and federal laws (such as Business and Professions Code Section 20040.5, Code of Civil Procedure Section 1281, and the Federal Arbitration Act) to any provisions of the Area Development | The | |
| 2. | To the extent this Addendum shall be deemed to be inconsistent with any terms or conditions of | ||
| said Area Development Agreement or exhibits or attachments thereto, the terms of this Addendum shall govern. | |||
| understands and consents to be bound by all of its terms. |
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to the 2025 Monicals Pizza Franchise Disclosure Document, Section 13.7 of the Area Development Agreement, which concerns binding arbitration, is amended in certain states to ensure compliance with local franchise laws. Specifically, for developers in California, the document notes that prospective developers should seek legal counsel to understand how California and federal laws, such as the Business and Professions Code Section 20040.5, Code of Civil Procedure Section 1281, and the Federal Arbitration Act, might affect the arbitration provisions.
For Rhode Island, Sections 13.1 and 13.2 are amended to invalidate any clauses that restrict jurisdiction or venue to locations outside of Rhode Island, or that require the application of laws from another state, concerning claims enforceable under the Rhode Island Franchise Investment Act. In Washington, Section 13.7 is amended so that the requirement for litigation or arbitration to occur in Illinois does not limit a developer's right to bring suit in Washington under the Washington Franchise Investment Protection Act.
For developers in Indiana, Section 13.7 is amended to state that arbitration between the franchisor and franchisee must occur in Indiana. These amendments ensure that the Monicals Pizza Area Development Agreement complies with specific state laws, providing franchisees with certain protections and rights within their respective states, particularly regarding legal proceedings and choice of law.