Concerning Monicals Pizza, what should I do if an employee made a statement about revenues or profits that was not in the FDD?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
DEVELOPER REPRESENTS AND ACKNOWLEDGES THAT IT HAS NOT RECEIVED OR RELIED ON ANY GUARANTEE, EXPRESS OR IMPLIED, AS TO THE REVENUES, PROFITS OR LIKELIHOOD OF SUCCESS OF ANY MONICAL'S RESTAURANT TO BE DEVELOPED PURSUANT TO THIS DEVELOPMENT AGREEMENT. DEVELOPER ACKNOWLEDGES AND AGREES THAT THERE HAVE BEEN NO REPRESENTATIONS BY FRANCHISOR OR ANYONE ON BEHALF OF FRANCHISOR THAT ARE NOT CONTAINED IN, OR ARE INCONSISTENT WITH, THE STATEMENTS MADE IN THE FRANCHISE DISCLOSURE DOCUMENT AND THIS DEVELOPMENT AGREEMENT.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, a prospective developer (franchisee) acknowledges that they have not received or relied on any guarantees, whether express or implied, regarding the revenues, profits, or likelihood of success of any Monicals Pizza restaurant. The document explicitly states that there have been no representations made by Monicals Pizza or anyone on their behalf that are not contained in, or are inconsistent with, the statements made in the Franchise Disclosure Document and the Development Agreement.
This means that if a Monicals Pizza employee makes any claims about potential revenues or profits that are not included in the FDD, the prospective franchisee should not rely on those statements. The FDD and the Development Agreement are the official sources of information, and any verbal or written statements outside of these documents should be treated with caution.
It is standard practice in the franchise industry for franchisors to disclaim any representations about potential franchisee earnings outside of what is provided in Item 19 of the FDD. This protects both the franchisor and the franchisee by ensuring that all financial expectations are based on documented information. Prospective franchisees should always conduct their own independent investigation and due diligence, consulting with legal and financial advisors, to assess the potential risks and rewards of investing in a Monicals Pizza franchise.
Therefore, if an employee makes a statement about revenues or profits that is not in the FDD, you should disregard it and rely solely on the information provided in the FDD and the Development Agreement. It would be prudent to bring the discrepancy to the attention of Monicals Pizza's corporate management to ensure consistent communication and avoid misunderstandings.