If a Monicals Pizza developer develops additional restaurants beyond the Development Agreement requirements, can any portion of the Development Fee be credited towards the Franchise Fee for these additional restaurants?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
During the term of this Development Agreement, Developer may, subject to the terms and conditions of this Development Agreement, develop and operate more Monical's Restaurants in the Development Territory than required by this Development Agreement; provided, however, that Developer shall give Franchisor reasonable assurances that Developer has the required skill, financial resources and managerial skills to perform its duties under this Development Agreement and each Franchise Agreement. Developer shall pay the full Franchise Fee for each additional Monical's Restaurant developed in excess of the requirements of this Development Agreement, and Franchisor shall not credit any part of the Development Fee against the Franchise Fee for any additional Monical's Restaurant.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, a developer who builds more restaurants than required by the Development Agreement will not receive credit for any portion of the Development Fee towards the Franchise Fee for those extra restaurants.
The Monicals Pizza Development Agreement allows developers to build and operate more restaurants in their territory than the minimum required, provided they can demonstrate the necessary skills, financial resources, and managerial abilities. However, the developer must pay the full Franchise Fee for each additional restaurant.
This policy means that while Monicals Pizza offers the opportunity to expand beyond the initial agreement, it does not provide any financial incentives in the form of Development Fee credits for these additional units. A prospective developer should factor this into their financial planning if they intend to build more restaurants than the minimum required by the Development Agreement.