If Monicals Pizza or its affiliate is an approved supplier, what agreement must the franchisee execute?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
13.1.2 Franchisor shall provide Franchisee, in the Confidential Operations Manual or other written or electronic form, with a list of specifications and a list of Approved Suppliers, and Franchisor may from time to time issue revisions to such list. If Franchisor or an Affiliate is an Approved Supplier, Franchisee shall execute a standard form purchase or supply agreement for the items to be supplied by Franchisor or its Affiliate. If Franchisee desires to utilize any services or products that Franchisor has not approved, or any services or products that require supplier approval, Franchisee shall first provide Franchisor with sufficient information, specifications and samples for Franchisor to determine whether the service or product complies with Franchisor's standards and specifications or the proposed supplier meets its Approved Supplier criteria. Franchisee shall pay all expenses incurred by Franchisor in connection with determining whether it shall approve an item, service or supplier. Franchisor will decide within a reasonable time, usually thirty (30) days after receiving all required information, whether Franchisee may purchase or lease such items or services or from such supplier. Approval of a supplier may be conditioned on, among other things, the supplier's: ability to provide sufficient quantity and quality of products or services at competitive prices; production and delivery capability; and dependability and general reputation. Nothing in this Section shall be construed to require Franchisor to approve any particular supplier, or to require Franchisor to make available to prospective suppliers any standards or specifications that Franchisor deems confidential.
13.1.3 Notwithstanding anything to the contrary in this Agreement, Franchisor has the right to review from time to time its approval of any items or suppliers. Franchisor may revoke its approval of any item, service or supplier at any time by notifying Franchisee and/or the supplier. Franchisee shall, at its own expense, promptly cease using, selling or providing any items or services disapproved by Franchisor and shall promptly cease purchasing from suppliers disapproved by Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to the 2025 FDD, if Monicals Pizza or one of its affiliates is an approved supplier, a franchisee must execute a standard form purchase or supply agreement for the items that will be supplied.
Monicals Pizza will provide a list of approved suppliers and specifications in the Confidential Operations Manual or other written/electronic form, which may be revised from time to time. If a franchisee wants to use a service or product that Monicals Pizza hasn't approved, they must first provide sufficient information, specifications, and samples so Monicals Pizza can determine if the service or product complies with their standards. The franchisee is responsible for covering all expenses Monicals Pizza incurs while determining whether to approve an item, service, or supplier.
Monicals Pizza will decide within a reasonable time, typically 30 days after receiving all required information, whether the franchisee can purchase or lease items or services from the supplier. Approval of a supplier may depend on their ability to provide sufficient quantity and quality of products or services at competitive prices, their production and delivery capability, and their dependability and general reputation. Monicals Pizza retains the right to review its approval of any items or suppliers and may revoke approval at any time by notifying the franchisee and/or the supplier. The franchisee must promptly stop using, selling, or providing any items or services disapproved by Monicals Pizza and must stop purchasing from disapproved suppliers.