Is a Monicals Pizza franchisee authorized to make any contract on behalf of the franchisor?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
This Development Agreement is purely a contractual relationship between the parties and does not appoint or make Developer an agent, legal representative, joint venturer, partner, employee, servant or independent contractor of Franchisor for any purpose whatsoever. Developer may not represent or imply to third parties that Developer is an agent of Franchisor, and Developer is in no way authorized to make any contract, agreement, warranty or representation on behalf of Franchisor, or to create any obligation, expressed or implied, on Franchisor's behalf. Under no circumstances shall Franchisor be liable for any act, omission, contract, debt or any other obligation of Developer. In no event shall this Development Agreement or any conduct pursuant hereto make Franchisor a fiduciary with respect to Developer. Franchisor shall in no way be responsible for any injuries to persons or property resulting from the development of any Monical's Restaurant pursuant to this Development Agreement. Any third party contractors and vendors retained by Developer for remodeling or construction are independent contractors of Developer alone.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, the Development Agreement between the franchisor and the developer (franchisee) is purely contractual and does not establish an agency relationship. The franchisee cannot represent themselves as an agent of Monicals Pizza.
Specifically, the franchisee is not authorized to make any contract, agreement, warranty, or representation on behalf of Monicals Pizza. Furthermore, they cannot create any obligation, whether expressed or implied, that would bind Monicals Pizza.
This means that a Monicals Pizza franchisee has no authority to act on behalf of the franchisor in any legal or business dealings. Franchisees must conduct their business independently and cannot enter into agreements that would create liability for Monicals Pizza. This is a common arrangement in franchising, designed to protect the franchisor from unauthorized commitments made by franchisees.