Is a Monicals Pizza franchisee permitted to advertise a 'going-out-of-business' sale at the franchised restaurant location or in any communication media?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
ictions
Franchisee shall focus its marketing on customers whose principal residence (or principal business office if the customer is a business entity) is inside Franchisee's Area of Primary Responsibility. Except as part of Cooperative Advertising implemented pursuant to Section 11.4 and acknowledging that on-line media has no identifiable geographic boundary and is addressed in Section 11.5 below, Franchisee shall not advertise in any media whose primary circulation is within the area of primary responsibility of another franchisee. Franchisor shall make reasonable efforts to enforce these restrictions with regard to Franchisee and any other Monical's Restaurants, but under no circumstances shall Franchisor be required to engage in litigation or similar actions with regard to these restrictions.
3. FEES
3.1 Franchise Fee
Upon execution of this Agreement, Franchisee shall pay a fee ("Franchise Fee") to Franchisor of ______________________________________ DOLLARS ($_____________). The Franchise Fee shall be deemed fully earned upon execution of this Agreement and is nonrefundable, except under certain conditions set forth under Sections 5.2, 5.5 and 8.3. The Franchise Fee is payment, in part, for expenses incurred by Franchisor in furnishing assistance and services to Franchisee as set forth in this Agreement and for costs incurred by Franchisor, including general sales and marketing expenses, training, legal, accounting and other professional fees.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
Based on the 2025 FDD, the document does not explicitly address whether a Monicals Pizza franchisee is permitted to advertise a 'going-out-of-business' sale. However, the FDD does outline advertising and promotional restrictions.
The agreement states that franchisees must focus their marketing efforts on customers within their Area of Primary Responsibility and restricts advertising in media whose primary circulation is within another franchisee's area. All online advertising and promotional materials must be submitted to Monicals Pizza for prior approval. Franchisees are required to spend at least two percent (2%) of the previous month's Gross Sales on local advertising, promotions, and public relations within the immediate locality surrounding the Franchised Restaurant.
Given the lack of specific information about 'going-out-of-business' sales, it is important for a prospective Monicals Pizza franchisee to seek clarification from the franchisor regarding the permissibility and guidelines for such advertising. This inquiry should cover whether such advertising is allowed, what restrictions or approvals apply, and how it aligns with the brand's overall marketing strategy and the franchisee's obligations for local advertising expenditures.