What franchise agreement is the transferee required to execute when acquiring a Monicals Pizza franchise?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
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12.1 Superiority of Franchise Agreement
For each Monical's Restaurant developed by Developer in the Development Territory, a separate Franchise Agreement shall be executed and any individual franchise fee as prescribed by Franchisor shall be paid to Franchisor. Developer acknowledges that any and all Franchise Agreements executed in connection with an individual Monical's Restaurant within the Development Territory are independent of this Development Agreement. The continued existence of any such Franchise Agreement shall not depend on the continuing existence of this Development Agreement. If any conflict shall arise in connection with this Development Agreement and any such Franchise Agreement, the latter shall have precedence and superiority over the former.
12.2 No Waiver
No failure of Franchisor to exercise any power reserved to it hereunder, or to insist upon strict compliance by Developer with any obligation or condition hereunder, and no custom or practice of the parties in variance with the terms hereof, shall constitute a waiver of Franchisor's right to demand exact compliance with the terms of this Development Agreement. Waiver by Franchisor of any particular default by Developer shall not be binding unless in writing and executed by Franchisor and shall not affect nor impair Franchisor's right with respect to any subsequent default of the same or of a different nature. Subsequent acceptance by Franchisor of any payment(s) due shall not be deemed to be a waiver by Franchisor of any breach by Developer of any terms, covenants or conditions of this Development Agreement.
12.3 Injunctive Relief
Developer acknowledges that any breach by Developer of any of the restrictions contained in Sections 6.1, 6.2, 7.4, 9.3 or 9.4 would result in irreparable injury to Franchisor, and that the damages arising out of any such breach would be difficult to ascertain, therefore, in addition to all other remedies provided by law or in equity, Franchisor shall be entitled to all equitable remedies, including injunctive relief without requirement to post bond, with respect to any such breach, whether actual or contemplated, and Developer specifically waives any and all defenses to injunctive relief.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document for Monicals Pizza states that for each Monicals Pizza restaurant developed within a development territory, a separate Franchise Agreement must be executed. Additionally, any individual franchise fee as required by Monicals Pizza must be paid to the company. This agreement is independent of the Development Agreement, and its existence does not depend on the continuation of the Development Agreement. In the event of a conflict between the Development Agreement and the Franchise Agreement, the Franchise Agreement takes precedence.
According to the FDD, when a developer seeks to establish additional Monicals Pizza restaurants under a Development Agreement, they must submit a separate application and enter into a separate Franchise Agreement for each location. Upon site approval by Monicals Pizza, the company will provide two copies of the Franchise Agreement along with a copy of the then-current Disclosure Document. The developer must then return a signed acknowledgment of receipt of the Disclosure Document.
Monicals Pizza will not execute the Franchise Agreement if the developer is not in compliance with their obligations under the Development Agreement or any other agreement with Monicals Pizza, or if the developer is in default of any obligations under any existing Franchise Agreement. The Franchise Agreement for each additional Monicals Pizza restaurant must be executed before the date specified in the Development Schedule for the restaurant to be established and operating.