If the Franchise Agreement or Area Development Agreement for Monicals Pizza contains a provision inconsistent with California Business and Professions Code Sections 20000 through 20043, which will control?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
| 1. | Development Agreement for Monical Pizza Corporation is amended as follows: | In recognition of the requirements of the California Franchise Investment Law, Cal. Corp. Code | |
|---|---|---|---|
| §§31000-3516 and the California Franchise Relations Act, Cal. Bus. And Prof. Code §§20000-20043, the Area | |||
| and non-renewal. | Section 8 of the Area Development Agreement contains provisions concerning termination If these provisions are inconsistent with California Business and Professions Code Sections 2000 through 20043, California law will control. | ||
| | Section 9.4 of the Area Development Agreement contains a covenant not to compete that |
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, if there is any inconsistency between the Franchise Agreement or Area Development Agreement and California Business and Professions Code Sections 20000 through 20043, California law will take precedence. This protection is explicitly mentioned in an addendum for California franchisees and developers.
This means that certain provisions in the standard Monicals Pizza agreements that might conflict with California's franchise laws will not be enforceable in California. These laws, detailed in the referenced code sections, relate to the termination or non-renewal of a franchise agreement.
For a prospective Monicals Pizza franchisee in California, this is a beneficial provision. It ensures that the franchisee's rights under California law are protected, even if the franchise agreement attempts to limit those rights. Franchisees should consult with legal counsel to fully understand their rights and protections under California law.