Are the Monicals Pizza Guarantor's obligations limited in any way?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
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If Guarantor consists of more than one person and/or entity, (a) this Guaranty Agreement shall be binding on all of them jointly and severally, and (b) notice to or from any of them will constitute notice to or from each of them.
Any notice or other communication to Franchisor may be addressed to Monical Pizza Corporation, 530 N. Bradley Blvd., Bradley, Illinois, 60915, Attention: President, or such other address as may be designated by Franchisor by registered or certified mail, return receipt requested, and the time of rendition of such notice or other communication shall be when it is deposited in an official United States Mail receptacle, postage prepaid.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
Based on the 2025 Monicals Pizza Franchise Disclosure Document, if the Guarantor consists of multiple people or entities, the Guaranty Agreement binds them jointly and severally. This means each guarantor is fully responsible for the entire obligation, not just a portion. Notice to or from one guarantor is considered notice to or from all of them.
The Guaranty Agreement is governed by Illinois law and binds the guarantor's legal and personal representatives, heirs, successors, and assigns. It benefits Monicals Pizza, its affiliates, their successors and assigns, and anyone else with rights under the Development Agreement and related agreements.
This comprehensive obligation ensures Monicals Pizza has strong recourse in case of franchisee default, as they can pursue any or all guarantors for the full amount owed. Prospective franchisees should carefully consider the implications of this unlimited guaranty and ensure they fully understand the risks involved before signing the agreement.