What happens if I fail to select a site for my Monicals Pizza franchise?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Should Franchisee fail to select a site for the Franchised Restaurant, which meets with Franchisor's approval within ninety (90) days after the Effective Date, Franchisor has the right to terminate this Agreement. If this Agreement is terminated pursuant to this Section 5.2, Franchisor shall return to Franchisee fifty percent (50%) of the Franchise Fee paid by Franchisee upon Franchisor's receipt of a General Release, the same as or similar to the General Release attached as Exhibit 1, releasing any and all claims against Franchisor, any Affiliate and their officers, directors, legal representatives, shareholders, managers, members, partners, owners, employees and agents (in their corporate and individual capacities).
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, if you, as the franchisee, fail to select a site that meets with Monicals Pizza's approval within 90 days after the effective date of the franchise agreement, Monicals Pizza has the right to terminate the agreement.
If the agreement is terminated due to failure to select a site, Monicals Pizza will return 50% of the franchise fee you paid. This refund is contingent upon Monicals Pizza's receipt of a general release, which releases any and all claims against Monicals Pizza, its affiliates, and their respective officers, directors, legal representatives, shareholders, managers, members, partners, owners, employees, and agents.
This clause highlights the importance of site selection in the franchising process. The 90-day window puts pressure on the franchisee to find a suitable location quickly. The loss of 50% of the franchise fee can be a significant financial hit, so prospective franchisees should carefully consider their ability to identify and secure an appropriate site within the given timeframe. Franchisees should also understand the terms of the general release before signing the franchise agreement.