Is a Monicals Pizza franchisee obligated to follow the franchisor's advice on pricing?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor shall make a reasonable effort to discuss problems and offer general guidance to Franchisee by telephone, e-mail, facsimile, or other methods with respect to planning, opening and operating the Franchised Restaurant. However, Franchisee shall use its independent judgment to make all business decisions and should not rely solely upon any advice given or statements made by Franchisor. Franchisor shall not charge for this service, however, Franchisor retains the right to refuse to provide, or to charge a fee for, this service should Franchisor deem Franchisee to be utilizing this service too frequently or in an unintended manner. Franchisor's advice or guidance to Franchisee relative to prices for products and services that, in Franchisor's judgment, constitutes good business practice is based upon the experience of Franchisor and its franchisees in operating Monical's Restaurants and an analysis of costs and prices charged for competitive products and services. Franchisee shall have the sole right to determine the prices to be charged by the Franchised Restaurant.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, Monicals Pizza offers advice and guidance to franchisees regarding pricing, but franchisees ultimately have the authority to set their own prices. While Monicals Pizza's advice is based on their experience and analysis of the market, franchisees are expected to use their independent judgment in making business decisions.
Specifically, Monicals Pizza will make a reasonable effort to discuss problems and offer general guidance to the franchisee by methods such as telephone, e-mail, or facsimile with respect to planning, opening, and operating the franchised restaurant. The franchisee should not solely rely upon any advice given or statements made by Monicals Pizza.
Monicals Pizza's advice or guidance to the franchisee relative to prices for products and services that, in Monicals Pizza's judgment, constitutes good business practice is based upon the experience of Monicals Pizza and its franchisees in operating Monical's Restaurants and an analysis of costs and prices charged for competitive products and services. However, the franchisee has the sole right to determine the prices to be charged by the Franchised Restaurant.