If Monicals Pizza modifies the system, is the franchisee required to accept and implement these changes?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
System
10.2.1 Franchisor has the right to change or modify the System from time to time including, without limitation, the adoption and use of new or modified Marks or copyrighted materials, and new or additional computer hardware, software, equipment, inventory, supplies or sales and marketing techniques. Franchisee shall promptly accept and implement any such changes in, or additions to, the System. Franchisee shall make such expenditures as such changes, additions or modifications in the System may reasonably require; provided, however, Franchisee shall not be required to implement or conform to any such changes, additions or modifications if the cost to do so would exceed (a) ONE DOLLAR ($1.00) during the first (1st) year of the term of this Agreement; (b) FIFTY THOUSAND DOLLARS ($50,000.00) in the aggregate during the initial term or during any one (1) renewal term of this Agreement (which amounts may be increased consistent with increases to the Consumer Price Index, [U.S. City Average, all items, 1982-84=100], as published by the United States Department of Labor, Bureau of Labor Statistics); or (c) ONE DOLLAR ($1.00) during the final year of the term of this Agreement if Franchisee provides written notice of its intention not to operate a successor franchise. Any required expenditure for changes or upgrades to the System shall be in addition to expenditures for repairs and maintenance as required in Section 13.2.
10.2.2 Any additions or remodeling of the Franchised Restaurant during any term of the Franchise Agreement must be submitted to Franchisor in writing and be pre-approved by Franchisor prior
to any construction or remodeling of the Franchised Restaurant or the Franchise Agreement may be ter
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, franchisees are generally required to accept and implement changes or modifications to the Monicals Pizza system. This includes adopting new or modified trademarks, copyrighted materials, computer hardware, software, equipment, inventory, supplies, and sales and marketing techniques. Franchisees must promptly implement these changes.
However, there are limits to the expenditures a franchisee must make to comply with these changes. During the first year of the agreement, the franchisee is not required to spend more than $1.00 on such changes. Over the entire initial term or any renewal term, the aggregate expenditure required for these changes cannot exceed $50,000.00. This $50,000 limit may be increased consistent with increases to the Consumer Price Index. In the final year of the agreement, if the franchisee provides written notice of their intention not to operate a successor franchise, they are only required to spend up to $1.00 on changes.
Any required expenditure for changes or upgrades to the Monicals Pizza system is in addition to expenditures for regular repairs and maintenance. Franchisees must also obtain written pre-approval from Monicals Pizza for any additions or remodeling of the franchised restaurant; failure to do so can result in termination of the Franchise Agreement.