When calculating the cumulative number of open Monicals Pizza restaurants, does it include restaurants the developer purchased from a transferring franchisee prior to the Development Agreement?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
*For each Franchised Restaurant to be established pursuant to this Development Agreement, assign a Center Number, i.e., 1, 2, 3, etc., a date which the Franchised Restaurant is required to be open "Opening Date," and the cumulative number of open Franchised Restaurants. The cumulative number shall take into account any Franchised Restaurants, which Developer has established or is in the process of opening or that were purchased from a transferring franchisee, as the case may be, prior to entering into this Development Agreement.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to the 2025 Monicals Pizza Franchise Disclosure Document, when calculating the cumulative number of open franchised restaurants, Monicals Pizza includes any restaurants the developer has established, is in the process of opening, or purchased from a transferring franchisee before entering into the Development Agreement.
This means that if a developer purchases an existing Monicals Pizza franchise from a franchisee who is transferring ownership before the development agreement is finalized, that restaurant counts towards the cumulative number of open restaurants under the developer's agreement. This is important for developers to understand, as it affects their obligations and targets for opening new Monicals Pizza locations.
Prospective developers should carefully review their Development Agreement and Development Schedule to understand how previously acquired locations impact their development obligations. This ensures clarity on the number of new restaurants they are required to establish independently versus those already in operation through acquisition.