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What is the effect of the addendum on the Monicals Pizza Area Development Agreement?

Monicals_Pizza Franchise · 2025 FDD

Answer from 2025 FDD Document

tle: | | Title: | |

FOR THE STATE OF HAWAII

between Monical Pizza Corporation and This Addendum to the Area Development Agreement is agreed to this day of, 20, by and
1. In recognition of the requirements of the Hawaii Franchise Investment Law, Hawaii Revised Statutes,
Title 26, Chapter 482E et seq., the Area Development Agreement for Monical Pizza Corporation is amended as follows:
Hawaii Franchise Investment Law, the Hawaii Franchise Investment Law will control. The Hawaii Franchise Investment Law provides rights to you concerning non-renewal,
termination and transfer of the Area Development Agreement. If the Area Development
Agreement, and more specifically its Section 8, contains a provision that is inconsistent with
2. Each provision of this Addendum shall be effective only to the extent that the jurisdictional
requirements of the Hawaii Franchise Investment Law applicable to the provisions are met independently of this
Addendum. To the extent this Addendum shall be deemed to be inconsistent with any terms or conditions of said
Area Development Agreement or exhibits or attachments thereto, the terms of this Addendum shall govern.
understands and consents to be bound by all of its terms. IN WITNESS WHEREOF, each of the undersigned hereby acknowledges having read this Addendum and
MONICAL PIZZA CORPORATION: Developer:
By: By:
Title: Title:

FOR THE STATE OF ILLINOIS

between Monical Pizza Corporation and This Addendum to the Area Development Agreement is agreed to this day of, 20, by and
1. Illinois law governs the Franchise Agreement.
2. agreement may provide for arbitration to take place outside of Illinois. In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However, a franchise
3. with the Illinois Franchise Disclosure Act or any other law of Illinois is void. Your rights upon Termination and Non-Renewal of an agreement are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act. In conformance with section 41 of the Illinois Franchise Disclosure Act, any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance
4. RENEWAL TERM) TO BRING YOUR RESTAURANT INTO COMPLIANCE. IF THE FRANCHISOR DECIDES TO MAKE CHANGES TO ITS SYSTEM (SUCH AS NEW EQUIPMENT, FIXTURES, SOFTWARE AND/OR TRADEMARKS), YOU MAY BE REQUIRED TO SPEND UP TO $50,000 DURING THE 5-YEAR TERM OF YOUR FRANCHISE AGREEMENT (AS WELL AS EACH 5-YEAR
understands and consents to be bound by all of its terms. IN WITNESS WHEREOF, each of the undersigned hereby acknowledges having read this Addendum and
MONICAL PIZZA CORPORATION: Developer:
By: By:
Title: Title:

FOR THE STATE OF INDIANA

This Addendum to the Area Development Agreement is agreed to this day of, 20, by and between Monical Pizza Corporation and
1. In recognition of the requirements of the Indiana Deceptive Franchise Practices Law, IC 23-2.2.7 and the Indiana Franchise Disclosure Law, IC 23-2-2-2.5, the Area Development Agreement for Monical Pizza Corporation is amended as follows:
Section 8 of the Area Development Agreement is amended to prohibit unlawful unilateral termination of a franchise unless there is a material violation of the Area Development Agreement and termination is not in bad faith.
Section 9.4 of the Area Development Agreement is amended subject to Indiana Code 23-2- 2.7-1(9) to provide that post-term non-competitor covenants shall have geographic limitation of the territory granted to Developer.
Section 11.3 of the Area Development Agreement is amended to provide that Developer will not be required to indemnify Franchisor for any liability imposed upon Franchisor as a result of Developer's reliance upon or use of procedures or products, which were required by Franchisor, if such procedures or products were utilized by Developer in the manner required by Franchisor.
Section 13.1 of the Area Development Agreement is amended to provide that in the event of a conflict between the laws of Indiana and Illinois, the Indiana Franchise Disclosure Law and/or the Indiana Deceptive Franchise Practices Law will prevail.
Section 13.2 of the Area Development Agreement is amended to provide that Developer may commence litigation in Indiana for any cause of action under Indiana law.
Section 13.7 of the Area Development Agreement is amended to provide that arbitration between Franchisor and Developer, shall be conducted in Indiana or a site mutually agreed upon.
2. Each provision of this Addendum shall be effective only to the extent that the jurisdictional requirements of the Indiana Law applicable to the provisions are met independently of this Addendum. To the extent this Addendum shall be deemed to be inconsistent with any terms or conditions of said Area Development Agreement or exhibits or attachments thereto, the terms of this Addendum shall govern. IN WITNESS WHEREOF, each of the undersigned hereby acknowledges having read this Addendum, and understands and consents to be bound by all of its terms. MONICAL PIZZA CORPORATION: Developer:
By: By:
Title: Title:

FOR THE STATE OF MARYLAND

between Monical Pizza Corporation and This Addendum to the Area Development Agreement is agreed to this day of, 20, by and
1. In recognition of the requirements of the Maryland Franchise Registration and Disclosure Law, Md.
as follows: Code Ann., Bus. Reg. §§14-201-14-233, the Area Development Agreement for Monical Pizza Corporation is amended
Section 13.1 of the Area Development Agreement is amended to provide that in the event of a conflict of laws, the Maryland Franchise Registration and Disclosure Law will prevail.
Franchise Registration and Disclosure Law. Any litigation between Developer and Franchisor may be instituted in any court of competent jurisdiction, including a court in the State of Maryland for claims arising under the Maryland
brought within 3 years after the grant of the franchise. Any claims arising under the Maryland Franchise Registration and Disclosure Law must be
2. or exhibits or attachments thereto, the terms of this Addendum shall govern. Each provision of this Addendum shall be effective only to the extent that the jurisdictional requirements of the Maryland Law applicable to the provisions are met independently of this Addendum. To the extent this Addendum shall be deemed to be inconsistent with any terms or conditions of said Area Development Agreement
understands and consents to be bound by all of its terms. IN WITNESS WHEREOF, each of the undersigned hereby acknowledges having read this Addendum, and
MONICAL PIZZA CORPORATION: Developer:
By: By:
Title: Title:
between Monical Pizza Corporation and This Addendum to the Area Development Agreement is agreed to this day of, 20, by and
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1. follows: In recognition of the Minnesota Franchise Law, Minn. Stat., Chapter 80C, §80C.01 through 80C.22, and the Rules and Regulations promulgated pursuant thereto by the Minnesota Commission of Securities, Minnesota Rule 2860.4400, et seq., the Area Development Agreement for Monical Pizza Corporation is amended as
 days' notice of non-renewal of the Area Development Agreement. Section 8 of the Area Development Agreement is amended to state that with respect to franchises governed by the Minnesota Franchise Law, the Franchisor will comply with Minn. Stat. Sec. 80C.14, Subds. 3, 4 and 5, which require, except in certain specified cases, that a Developer be given 90 days' notice of termination (with 60 days to cure) and 180
Developer is not required to consent to liquidated damages because Minn. Rule 2860.44005
prohibits requiring a Developer to consent to liquidated damages.
 giving rise to the claim. Section 13.4 of the Area Development Agreement is amended to state that any claim concerning the Franchised Restaurant or this Development Agreement or any related agreement shall be barred unless an arbitration or an action for a claim that cannot be the subject of arbitration is commenced within three (3) years from the date on which Developer or Franchisor knew or should have known, in the exercise of reasonable diligence, of the facts
 litigation to be conducted outside Minnesota. Minn. Stat. §80C.21 and Minn. Rule 2860.4400J prohibit Developer from requiring In addition, nothing in the Disclosure Document or Area Development Agreement can abrogate or reduce any of Developer's rights as provided for in Minnesota Statutes, Chapter 80C, or Developer's rights to any procedure, forum or remedies provided for by the laws of the jurisdiction.
2. or exhibits or attachments thereto, the terms of this Addendum shall govern. Each provision of this Addendum shall be effective only to the extent that the jurisdictional requirements of the Minnesota Law applicable to the provisions are met independently of this Addendum. To the extent this Addendum shall be deemed to be inconsistent with any terms or conditions of said Area Development Agreement
understands and consents to be bound by all of its terms.

Source: Item 23 — RECEIPTS (FDD pages 46–257)

What This Means (2025 FDD)

According to the 2025 Monicals Pizza Franchise Disclosure Document, the addendum to the Area Development Agreement addresses specific legal requirements in certain states. These addenda are designed to ensure that the Area Development Agreement complies with state franchise laws.

For instance, the addendum modifies the Area Development Agreement to comply with franchise laws in Hawaii, New York, Rhode Island, Washington, and Maryland. In Hawaii, the addendum ensures that the Hawaii Franchise Investment Law controls aspects like non-renewal, termination, and transfer rights, superseding any conflicting provisions in Section 8 of the Area Development Agreement. Similarly, in New York, the addendum prevents Monicals Pizza from transferring its obligations unless the transferee can fulfill them, protects the developer's rights under New York's General Business Law, and allows the developer to terminate the agreement on legally available grounds.

In Rhode Island, the addendum amends sections 13.1 and 13.2 of the Area Development Agreement to ensure that restrictions on jurisdiction or venue outside of Rhode Island, or the application of other states' laws, are void if they conflict with the Rhode Island Franchise Investment Act. In Washington, the addendum ensures that the Washington Franchise Investment Protection Act prevails in case of conflicting laws, allows developers to bring suits in Washington, and invalidates provisions that unreasonably restrict the statute of limitations or rights to a jury trial. Additionally, transfer fees must reflect Monicals Pizza's reasonable costs. In Maryland, the addendum ensures that the Maryland Franchise Registration and Disclosure Law takes precedence in case of conflicting laws, allows litigation in Maryland courts for claims under Maryland law, and requires claims to be brought within three years of the franchise grant.

Each provision of the addendum is effective only to the extent that it independently meets the jurisdictional requirements of the relevant state law. If any terms of the Area Development Agreement are inconsistent with the addendum, the terms of the addendum will govern. This ensures that Monicals Pizza's Area Development Agreement adheres to the specific legal requirements of each state, providing additional protection and rights to the developer as mandated by state laws.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.
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