factual

What is the geographic scope of this addendum to the Monicals Pizza Franchise Agreement?

Monicals_Pizza Franchise · 2025 FDD

Answer from 2025 FDD Document

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FOR THE STATE OF INDIANA

This Addendum to the Area Development Agreement is agreed to this day of, 20, by and between Monical Pizza Corporation and
1. In recognition of the requirements of the Indiana Deceptive Franchise Practices Law, IC 23-2.2.7 and the Indiana Franchise Disclosure Law, IC 23-2-2-2.5, the Area Development Agreement for Monical Pizza Corporation is amended as follows:
Section 8 of the Area Development Agreement is amended to prohibit unlawful unilateral termination of a franchise unless there is a material violation of the Area Development Agreement and termination is not in bad faith.
Section 9.4 of the Area Development Agreement is amended subject to Indiana Code 23-2- 2.7-1(9) to provide that post-term non-competitor covenants shall have geographic limitation of the territory granted to Developer.
Section 11.3 of the Area Development Agreement is amended to provide that Developer will not be required to indemnify Franchisor for any liability imposed upon Franchisor as a result of Developer's reliance upon or use of procedures or products, which were required by Franchisor, if such procedures or products were utilized by Developer in the manner required by Franchisor.
Section 13.1 of the Area Development Agreement is amended to provide that in the event of a conflict between the laws of Indiana and Illinois, the Indiana Franchise Disclosure Law and/or the Indiana Deceptive Franchise Practices Law will prevail.
Section 13.2 of the Area Development Agreement is amended to provide that Developer may commence litigation in Indiana for any cause of action under Indiana law.
Section 13.7 of the Area Development Agreement is amended to provide that arbitration between Franchisor and Developer, shall be conducted in Indiana or a site mutually agreed upon.
2. Each provision of this Addendum shall be effective only to the extent that the jurisdictional requirements of the Indiana Law applicable to the provisions are met independently of this Addendum. To the extent this Addendum shall be deemed to be inconsistent with any terms or conditions of said Area Development Agreement or exhibits or attachments thereto, the terms of this Addendum shall govern. IN WITNESS WHEREOF, each of the undersigned hereby acknowledges having read this Addendum, and understands and consents to be bound by all of its terms. MONICAL PIZZA CORPORATION: Developer:
By: By:
Title: Title:

FOR THE STATE OF MARYLAND

between Monical Pizza Corporation and This Addendum to the Area Development Agreement is agreed to this day of, 20, by and
1. In recognition of the requirements of the Maryland Franchise Registration and Disclosure Law, Md.
as follows: Code Ann., Bus. Reg. §§14-201-14-233, the Area Development Agreement for Monical Pizza Corporation is amended
Section 13.1 of the Area Development Agreement is amended to provide that in the event of a conflict of laws, the Maryland Franchise Registration and Disclosure Law will prevail.
Franchise Registration and Disclosure Law. Any litigation between Developer and Franchisor may be instituted in any court of competent jurisdiction, including a court in the State of Maryland for claims arising under the Maryland
brought within 3 years after the grant of the franchise. Any claims arising under the Maryland Franchise Registration and Disclosure Law must be
2. or exhibits or attachments thereto, the terms of this Addendum shall govern. Each provision of this Addendum shall be effective only to the extent that the jurisdictional requirements of the Maryland Law applicable to the provisions are met independently of this Addendum. To the extent this Addendum shall be deemed to be inconsistent with any terms or conditions of said Area Development Agreement
understands and consents to be bound by all of its terms. IN WITNESS WHEREOF, each of the undersigned hereby acknowledges having read this Addendum, and
MONICAL PIZZA CORPORATION: Developer:
By: By:
Title: Title:
between Monical Pizza Corporation and This Addendum to the Area Development Agreement is agreed to this day of, 20, by and
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1. follows: In recognition of the Minnesota Franchise Law, Minn. Stat., Chapter 80C, §80C.01 through 80C.22, and the Rules and Regulations promulgated pursuant thereto by the Minnesota Commission of Securities, Minnesota Rule 2860.4400, et seq., the Area Development Agreement for Monical Pizza Corporation is amended as
 days' notice of non-renewal of the Area Development Agreement. Section 8 of the Area Development Agreement is amended to state that with respect to franchises governed by the Minnesota Franchise Law, the Franchisor will comply with Minn. Stat. Sec. 80C.14, Subds. 3, 4 and 5, which require, except in certain specified cases, that a Developer be given 90 days' notice of termination (with 60 days to cure) and 180
Developer is not required to consent to liquidated damages because Minn. Rule 2860.44005
prohibits requiring a Developer to consent to liquidated damages.
 giving rise to the claim. Section 13.4 of the Area Development Agreement is amended to state that any claim concerning the Franchised Restaurant or this Development Agreement or any related agreement shall be barred unless an arbitration or an action for a claim that cannot be the subject of arbitration is commenced within three (3) years from the date on which Developer or Franchisor knew or should have known, in the exercise of reasonable diligence, of the facts
 litigation to be conducted outside Minnesota. Minn. Stat. §80C.21 and Minn. Rule 2860.4400J prohibit Developer from requiring In addition, nothing in the Disclosure Document or Area Development Agreement can abrogate or reduce any of Developer's rights as provided for in Minnesota Statutes, Chapter 80C, or Developer's rights to any procedure, forum or remedies provided for by the laws of the jurisdiction.
2. or exhibits or attachments thereto, the terms of this Addendum shall govern. Each provision of this Addendum shall be effective only to the extent that the jurisdictional requirements of the Minnesota Law applicable to the provisions are met independently of this Addendum. To the extent this Addendum shall be deemed to be inconsistent with any terms or conditions of said Area Development Agreement
understands and consents to be bound by all of its terms. IN WITNESS WHEREOF, each of the undersigned hereby acknowledges having read this Addendum and
MONICAL PIZZA CORPORATION: Developer:
By: By:

Title: Title:

FOR THE STATE OF NEW YORK

between Monical Pizza Corporation and This Addendum to the Area Development Agreement is agreed to this day of, 20, by and
1. In recognition of the requirements of New York's General Business Law, Article 33, §§680 through
695, the Area Development Agreement for Monical Pizza Corporation is amended as follows:
Section 7.1 of the Area Development Agreement is amended to provide that Franchisor will
not transfer and assign its rights and obligations under the Area Development Agreement
unless the transferee will be able to perform the Franchisor's obligations under the Area
Development Agreement, in Franchisor's good faith judgment, so long as it remains subject
to Article 33 of the General Business Law of the State of New York.
No provision in the Area Development Agreement shall be construed as requiring Developer
General Business Law of the State of New York. to waive any right conferred upon the Developer by the provisions of Article 33 of the
Section 8 of the Area Development Agreement is amended to provide that the Developer may
terminate the Area Development Agreement on any grounds available by law.
2. or exhibits or attachments thereto, the terms of this Addendum shall govern. Each provision of this Addendum shall be effective only to the extent that the jurisdictional
requirements of the New York Law applicable to the provisions are met independently of this Addendum. To the extent
this Addendum shall be deemed to be inconsistent with any terms or conditions of said Area Development Agreement
understands and consents to be bound by all of its terms.

Source: Item 23 — RECEIPTS (FDD pages 46–257)

What This Means (2025 FDD)

According to Monicals Pizza's 2025 Franchise Disclosure Document, the franchise agreement includes multi-state addenda that address specific legal requirements within certain states. These addenda modify the standard franchise agreement to comply with state franchise laws.

Specifically, the document includes addenda for Indiana, Wisconsin, Maryland, Minnesota, Virginia, Washington, California and Illinois. Each addendum contains provisions that supersede conflicting terms in the standard franchise agreement to ensure compliance with the respective state's laws.

For a prospective Monicals Pizza franchisee, this means the standard franchise agreement is not uniformly applied across all locations. Franchisees need to understand the specific addendum for their state, as it will govern their rights and obligations. This includes aspects such as termination conditions, dispute resolution, non-compete clauses, and adherence to state-specific franchise laws. It is important to carefully review the addendum applicable to their state to fully understand the terms of the franchise agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.
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