Can a Monicals Pizza developer exceed their minimum development obligation?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
During the term of this Development Agreement, Developer may, subject to the terms and conditions of this Development Agreement, develop and operate more Monical's Restaurants in the Development Territory than required by this Development Agreement; provided, however, that Developer shall give Franchisor reasonable assurances that Developer has the required skill, financial resources and managerial skills to perform its duties under this Development Agreement and each Franchise Agreement. Developer shall pay the full Franchise Fee for each additional Monical's Restaurant developed in excess of the requirements of this Development Agreement, and Franchisor shall not credit any part of the Development Fee against the Franchise Fee for any additional Monical's Restaurant.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, a developer can exceed their minimum development obligations under certain conditions. Specifically, during the term of the Development Agreement, the developer may develop and operate more Monicals Restaurants in the Development Territory than required. However, this is contingent upon the developer providing reasonable assurances to Monicals Pizza that they possess the necessary skills, financial resources, and managerial abilities to fulfill their duties under both the Development Agreement and each Franchise Agreement.
For each additional Monicals Restaurant developed beyond the minimum requirement, the developer must pay the full franchise fee. Monicals Pizza will not credit any part of the Development Fee towards the Franchise Fee for these additional restaurants. This means that while the initial Development Fee covers a portion of the franchise fees for the restaurants within the original development schedule, it does not extend to any restaurants developed beyond that schedule.
To establish each additional Monicals Restaurant, the developer must submit a separate application and enter into a separate Franchise Agreement. Upon Monicals Pizza's approval of the site, they will provide two copies of the Franchise Agreement along with a copy of their then-current Disclosure Document. The developer must promptly return a signed acknowledgment of receipt of the Disclosure Document. After the applicable waiting periods, the developer must execute and deliver two copies of the Franchise Agreement and pay the Franchise Fee, less any applicable credit as outlined in the agreement.
Monicals Pizza retains the right not to execute the Franchise Agreement if the developer is not in compliance with or is in default of any obligations under the Development Agreement or any other agreement with Monicals Pizza. Similarly, if the developer, as a franchisee, is not compliant with any existing Franchise Agreement, Monicals Pizza can withhold execution. The Franchise Agreement for each additional restaurant must be executed before the date specified in the Development Schedule for the restaurant to be established and operating.