Does the Monicals Pizza franchise agreement include an Arbitration clause, as indicated in Section 23.7?

Yes, according to the 2025 FDD, the Monicals Pizza franchise agreement does include an arbitration clause in Section 23.7. However, the franchisor's right to seek injunctive relief takes precedence over the covenant to arbitrate disputes. This means that Monicals Pizza can pursue immediate court action for certain breaches without waiting for arbitration.

Specifically, Monicals Pizza retains the right to seek injunctive relief through arbitration or in a state or federal court. Injunctive relief typically involves seeking a court order to stop a party from continuing a specific action that is causing harm. This is often used to protect trade secrets, brand reputation, or enforce non-compete agreements.

For a prospective Monicals Pizza franchisee, this means that while most disputes will likely be handled through arbitration, Monicals Pizza can bypass arbitration and go directly to court for issues where they believe immediate action is necessary to prevent irreparable harm. This could include situations like a franchisee violating confidentiality agreements or operating a competing business in violation of the non-compete clause. Franchisees should understand that this clause favors Monicals Pizza in certain critical situations, allowing them to act swiftly to protect their interests.