Does the Monicals Pizza franchise agreement require the franchisee to acknowledge they have read and understand the binding arbitration provision?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
e: | | 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 |
|---|
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
Based on the 2025 Monicals Pizza Franchise Disclosure Document, there is no explicit mention of a requirement for the franchisee to acknowledge they have read and understand a binding arbitration provision within the excerpts provided. However, an addendum to the Area Development Agreement includes an acknowledgement.
The Illinois addendum states, "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." This implies that at least for franchisees in Illinois, there is an acknowledgement of understanding and consent to the terms of the addendum, which may include provisions related to dispute resolution or legal matters.
It is important for a prospective Monicals Pizza franchisee to carefully review the full Franchise Agreement and any addenda, paying close attention to clauses related to dispute resolution, governing law, and acknowledgements. They should seek legal counsel to fully understand their rights and obligations, especially concerning arbitration and venue selection, as these can significantly impact how disputes are resolved. Franchisees should also inquire with the franchisor about whether an acknowledgement is required in the franchise agreement.