Can a Monicals Pizza developer avoid termination of the Development Agreement if they default?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in the Development Agreement | Summary |
|---|---|---|
| g. "Cause" defined-curable defaults | Section 8.2 | You can avoid termination of the Development Agreement if you cure a default arising from your failure to comply with mandatory specifications in the Development Agreement within 30 days of receiving our notice of termination. |
| h. "Cause" defined-non curable defaults | Section 8.1 | We have the right to terminate the Development Agreement without giving you an opportunity to cure if you: transfer of control of Development Agreement or an interest in the your business entity in an unauthorized manner; made a material misrepresentation or omission in the application for the franchise; are convicted of or plead no contest to a felony or other crime or offense likely to affect the goodwill associated with the Marks; misuse or make unauthorized use of the Marks; terminate any Franchise Agreement with or without cause; fail to meet the timing requirements and deadlines contained in the development schedule; or fail to comply with any provision of the Development Agreement after notice of non-compliance. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 32–41)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, a developer may be able to avoid termination of the Development Agreement if they default. Specifically, if the default arises from a failure to comply with mandatory specifications in the Development Agreement, the developer has 30 days after receiving notice of termination to correct the issue. If the developer successfully cures the default within this timeframe, Monicals Pizza will not terminate the Development Agreement.
However, Monicals Pizza has the right to terminate the Development Agreement without providing an opportunity to cure in certain situations. These include unauthorized transfer of the Development Agreement or an interest in the business entity, making a material misrepresentation or omission in the franchise application, conviction of a felony or other crime that could harm the goodwill associated with the Monicals Pizza brand, misuse of the brand's marks, termination of any Franchise Agreement, failure to meet development schedule deadlines, or failure to comply with any provision of the Development Agreement after receiving notice of non-compliance.
This distinction between curable and non-curable defaults is common in franchising. It is important for a prospective Monicals Pizza developer to understand what constitutes each type of default and the implications for their Development Agreement. The franchisee should carefully review Sections 8.1 and 8.2 of the Development Agreement, as referenced in Item 17 of the FDD, to fully understand their obligations and the potential consequences of failing to meet them.