Who is considered the 'Franchisee' in the context of the Monicals Pizza Unlimited Guaranty and Assumption of Obligations?

According to the 2025 Monicals Pizza Franchise Disclosure Document, the term 'Franchisee' in the context of the Unlimited Guaranty and Assumption of Obligations refers to the individual(s) defined as such in the introductory paragraph of the Franchise Agreement, along with any Franchise Operating Entity listed in the introductory paragraph that is owned and controlled by those individuals. This definition is crucial for understanding who is bound by the obligations and responsibilities outlined in the franchise agreement.

Specifically, the Franchise Operating Entity must have its entire legal and beneficial ownership held only by individuals meeting the definition of Franchisee and listed on Exhibit 4 of the Franchise Agreement. Furthermore, the charter for the Franchise Operating Entity must stipulate that its activities are limited to operating a Monicals Pizza restaurant and fulfilling obligations under the Franchise Agreement. This ensures that the individuals ultimately responsible for the franchise are clearly identified and accountable.

This definition has significant implications for prospective Monicals Pizza franchisees. It clarifies that not only the individual franchisee but also any business entity they use to operate the franchise will be bound by the terms of the agreement. Moreover, any individuals holding a legal or beneficial interest of five percent or greater in the franchisee are required to execute and deliver to Monicals Pizza Corporation the Unlimited Guaranty and Assumption of Obligations, making them personally liable for the franchisee's obligations. Therefore, potential franchisees need to be aware of these requirements and ensure that all relevant parties are prepared to assume these responsibilities.