What happens to the Monicals Pizza Development Agreement if any of the franchisee's Franchise Agreements are terminated?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in the Development Agreement | Summary |
|---|---|---|
| e. Termination by | Section 9.1 | Termination of any of your Franchise |
| franchisor without | Agreements, will constitute termination of your | |
| cause | Development Agreement for cause. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 32–41)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, the termination of any of a franchisee's individual Franchise Agreements will result in the termination of their entire Development Agreement. This is considered a termination 'for cause' by Monicals Pizza.
This provision means that if a Monicals Pizza franchisee operating under a Development Agreement fails to uphold the terms of even one of their individual franchise agreements, the franchisor has the right to terminate the entire Development Agreement. This could have significant implications for a developer, as it could lead to the loss of rights to develop multiple Monicals Pizza locations.
Prospective Monicals Pizza franchisees should carefully consider this clause and ensure they have the resources and capabilities to manage each franchise location in accordance with the franchise agreement. Understanding the specific grounds for termination of a Franchise Agreement, as detailed elsewhere in the FDD, is crucial to avoiding such a situation.