What is the Monicals Pizza franchisee's responsibility regarding leased equipment upon termination, and what is the exception?

According to Monicals Pizza's 2025 Franchise Disclosure Document, upon termination of the franchise agreement, the franchisee is generally responsible for promptly returning any leased, loaned, or other third-party equipment used in the operation of the franchised restaurant. This means the franchisee must ensure that all such equipment is returned to the appropriate third party as per the terms of their respective lease or agreement.

However, there is an exception to this rule. If Monicals Pizza directs otherwise in writing, they may agree to assume the franchisee's responsibility for the equipment under any applicable lease or agreement. In this case, Monicals Pizza would take over the obligations related to the leased equipment.

It is important to note that even if Monicals Pizza assumes responsibility for the equipment, the original liability of the franchisee under the lease or agreement is not released. This means that while Monicals Pizza may handle the equipment and related obligations, the franchisee remains ultimately responsible if Monicals Pizza fails to meet those obligations. This could have significant financial implications for the franchisee even after the franchise agreement has been terminated.