If a Monicals Pizza developer is convicted of a felony, does that automatically trigger immediate termination of the Development Agreement?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.1.3 Developer is convicted of or pleads no contest to a felony or other crime or offense that may adversely affect the goodwill associated with the Marks;
- 8.1.4 Developer makes any unauthorized use of the Marks or unauthorized use or disclosure of the Confidential Information;
- 8.1.5 Franchisor has delivered a notice of termination for a Franchise Agreement between Franchisor and Developer in accordance with its terms and conditions, or Developer has terminated a Franchise Agreement without cause;
- 8.1.6 Developer fails to meet or satisfy any timing requirement or deadline contained in the Development Schedule; or
- 8.1.7 Developer fails to comply with any other provision of the Development Agreement and does not correct within thirty (30) days after written notice from Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, a felony conviction can lead to the termination of the Development Agreement. Specifically, if the developer is convicted of a felony, or pleads no contest to a felony or other crime or offense, that may adversely affect the goodwill associated with the Monicals Pizza marks, it can trigger termination.
However, termination is not necessarily automatic. Monicals Pizza retains the right to terminate the Development Agreement under these circumstances. This means Monicals Pizza has the discretion to decide whether or not to terminate the agreement based on the specifics of the felony and its potential impact on the brand's reputation.
It's important to note that the Development Agreement may also be terminated if the developer makes unauthorized use of the Monicals Pizza marks or confidential information, if a Franchise Agreement between Monicals Pizza and the developer is terminated, if the developer fails to meet deadlines in the Development Schedule, or if the developer fails to comply with other provisions of the Development Agreement and does not correct the issue within 30 days after written notice from Monicals Pizza.