Is the Monicals Pizza Franchise Agreement binding on the successors and assigns of the recipient?

According to the 2025 Monicals Pizza Franchise Disclosure Document, the Guaranty Agreement is binding on the guarantor's legal or personal representatives, heirs, successors, and assigns. This agreement benefits Monicals Pizza, its affiliates, and their successors and assigns, as well as any other person or entity with rights under the Franchise Agreement.

This means that if a Monicals Pizza franchisee has a guarantor for their obligations (often required for business entities or individuals with limited credit history), that guarantee extends beyond the original guarantor. If the guarantor dies, becomes incapacitated, or transfers their assets, the obligations under the Guaranty Agreement continue to apply to their legal representatives, heirs, successors, or assigns.

For a prospective Monicals Pizza franchisee, this highlights the importance of carefully considering who acts as a guarantor and ensuring they understand the long-term implications. The guarantor's obligations will not simply disappear if the guarantor's circumstances change. This clause protects Monicals Pizza by ensuring that the financial commitments are upheld even if the original guarantor is no longer able to fulfill them personally.