What is the governing law for disputes related to the Monicals Pizza Development Agreement?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
| 1. | In recognition of the requirements of the California Franchise Investment Law, Cal. Corp. Code | ||
|---|---|---|---|
| §§31000-3516 and the California Franchise Relations Act, Cal. Bus. And Prof. Code §§20000-20043, the Area | |||
| Agreement restricting venue to a forum outside of the State of California. | Section 13.7 of the Area Development Agreement requires binding arbitration. arbitration shall occur at the forum indicated in Section 13.7. Prospective developers are encouraged to consult legal counsel to determine the applicability of California and federal laws (such as Business and Professions Code Section 20040.5, Code of Civil Procedure Section 1281, and the Federal Arbitration Act) to any provisions of the Area Development | The | |
| | The Area Development Agreement requires application of the laws of a state other than | ||
| California. This provision might not be enforceable under California law. |
| 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: | | | | 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. |
| | 1. | | In recognition of the requirements of the Hawaii Franchise Investment Law, Hawaii Revised Statutes, | | | | | Title 26, Chapter 482E et seq., the Area Development Agreement for Monical Pizza Corporation is amended as follows: | | | | Hawaii Franchise Investment Law, the Hawaii Franchise Investment Law will control. | The Hawaii Franchise Investment Law provides rights to you concerning non-renewal, | | | | | termination and transfer of the Area Development Agreement. If the Area Development | | | | | Agreement, and more specifically its Section 8, contains a provision that is inconsistent with |
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to the 2025 Monicals Pizza Franchise Disclosure Document, the governing law for disputes related to the Area Development Agreement may vary depending on the franchisee's location. For franchisees in California, an addendum to the agreement states that if the original agreement requires the application of laws from a state other than California, this provision might not be enforceable under California law. Similarly, for franchisees in Hawaii, if any part of the Area Development Agreement, specifically Section 8, is inconsistent with the Hawaii Franchise Investment Law, then the Hawaii Franchise Investment Law will take precedence.
For franchisees in New York, the Area Development Agreement is amended to ensure that no provision requires the developer to waive any rights conferred by Article 33 of New York's General Business Law. Additionally, a New York franchisee may terminate the Area Development Agreement on any grounds available by law.
These addenda highlight that certain provisions in the standard Monicals Pizza Area Development Agreement may be superseded by state-specific franchise laws, offering additional protections to franchisees in those states. Prospective franchisees should consult with legal counsel to understand how local laws may affect the enforceability of specific clauses within their agreements.