What happens if a General Release is prohibited by law for a Monicals Pizza franchise transfer?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
isor by Developer are fully paid and satisfied;
- 7.2.3.3 Developer (and any transferring owners, if Developer is a business entity) has executed a General Release in a form satisfactory to Franchisor and substantially similar to the General Release attached to the Franchise Agreement ("General Release"), releasing any and all claims against Franchisor, including its equity owners, officers, directors and employees, in their corporate and individual capacities including, without limitation, claims arising under federal, state or local laws, rules or ordinances, and any other matters incident to the termination of this Development Agreement or to the transfer of Developer's interest herein or to the transfer of Developer's ownership of all or any part of the Development Rights; provided, however, that if a General Release is prohibited, Developer shall give the maximum release allowed by law;
- 7.2.3.4 the prospective transferee has satisfied Franchisor that it meets Franchisor's management, business and financial standards, and otherwise possesses the character and capabilities, including business reputation and credit rating, as Franchisor may require to demonstrate its ability to carry out the obligations contained herein and in the Franchise Agreement;
- 7.2.3.5 the transferee has executed a General Release releasing any and all claims against Franchisor and its equity owners, officers, directors and employees, in their corporate and individual capacities, with respect to any representations regarding the Franchise or the business conducted pursuant thereto or any other matter that may have been made to the transferee by Developer;
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to the 2025 Monicals Pizza Franchise Disclosure Document, if a General Release is prohibited by law during a franchise transfer, the franchisee must provide the maximum release allowed by law. This condition applies both to the developer in the context of a Development Agreement and to the franchisee when transferring their franchise interest.
For a prospective Monicals Pizza franchisee, this means that while a full release of claims against the franchisor is typically required during a transfer, this requirement is subject to legal limitations. If a complete General Release is legally prohibited in the relevant jurisdiction, the franchisee is only obligated to provide the broadest release permissible under the applicable laws.
This provision ensures that franchisees are not forced to violate legal restrictions to complete a transfer. However, it also means that Monicals Pizza retains some protection against potential future claims, even in situations where a full release is not possible. Franchisees should consult with legal counsel to understand the specific release requirements and limitations in their jurisdiction.