Does the Monicals Pizza Development Agreement disclaim the representations made by the Franchisor in the Franchise Disclosure Document furnished to the Developer?
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, the Development Agreement includes an acknowledgement by the developer regarding representations made by the franchisor. Specifically, the developer acknowledges that they have not relied on any guarantees or representations from Monicals Pizza that are not included or are inconsistent with the Franchise Disclosure Document and the Development Agreement itself. This means that any promises, assurances, or expectations about potential revenues, profits, or success of the Monicals Restaurant that are not explicitly stated in these documents cannot be relied upon by the developer. This clause aims to limit Monicals Pizza's liability by ensuring that developers only rely on the information provided in the official documents.
This acknowledgement is a standard practice in franchising, intended to protect the franchisor from potential misinterpretations or reliance on verbal promises made during the sales process. It reinforces the importance of the Franchise Disclosure Document as the primary source of information for prospective franchisees. The developer is essentially agreeing that they have not been given any 'side deals' or additional promises that are not documented in the FDD or the Development Agreement.
For a prospective Monicals Pizza developer, this clause highlights the critical need to thoroughly review and understand the Franchise Disclosure Document and the Development Agreement. It also underscores the importance of documenting any discussions or representations made by the franchisor during the due diligence process. If a developer believes they have received information or promises that are not reflected in these documents, they should seek clarification and ensure that such information is incorporated into the agreement before signing. This clause serves as a reminder that the written agreements are the final and binding terms of the relationship between Monicals Pizza and the developer.