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To what extent is each provision of the addendum effective for Monicals Pizza?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
itle: | | 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 | ||||
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| 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 | |
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| 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 FDD, the addendum to the Monicals Pizza franchise agreement is designed to ensure compliance with state-specific franchise laws. For instance, the addendum explicitly addresses the requirements of the Indiana Deceptive Franchise Practices Law and the Indiana Franchise Disclosure Law, modifying sections of the Area Development Agreement to align with these regulations. These modifications cover aspects such as termination conditions, non-compete clauses, indemnification, choice of law, litigation venues, and arbitration proceedings.
Similarly, for Maryland, the addendum acknowledges the Maryland Franchise Registration and Disclosure Law, amending the Area Development Agreement to ensure that Maryland law prevails in case of conflicts and specifying that litigation can be instituted in Maryland for claims arising under its franchise laws. It also sets a three-year limit for claims under the Maryland Franchise Registration and Disclosure Law. For Minnesota, the addendum ensures compliance with the Minnesota Franchise Law, particularly concerning termination notices and liquidated damages.
In Wisconsin, the addendum stipulates that the Wisconsin Fair Dealership Law supersedes any conflicting terms in the Franchise Agreement. However, the effectiveness of each provision in the addendum is contingent upon meeting the jurisdictional requirements of the respective state laws independently of the addendum itself. This means that the specific circumstances and the applicability of state laws will determine the extent to which each provision is effective, ensuring that Monicals Pizza franchisees are protected by and compliant with local regulations.
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.