Does the indemnification obligation for Monicals Pizza extend to breaches of the lease for the Approved Location?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Landlord shall provide any written Notice of Default of Tenant to MONICAL PIZZA CORPORATION simultaneously with the delivery thereof to Tenant.
Such notice shall be delivered to MONICAL PIZZA CORPORATION in writing by overnight delivery by FedEx or other nationally recognized overnight courier.
Landlord and Tenant hereby acknowledge and agree that MONICAL PIZZA CORPORATION shall have the right for fifteen (15) days after the expiration of the period given to Tenant to cure any deficiency under the Lease, to cure such deficiency if Tenant should fail to do so.
In no event is MONICAL PIZZA CORPORATION obligated to cure such deficiency.
All notices shall be sent to: MONICAL PIZZA CORPORATION, Attn: Janelle Reents, President, 530 N. Bradley Blvd., Bradley, IL 60915.
Landlord grants Tenant and any successor franchisee of MONICAL PIZZA CORPORATION the right to display the registered trademark Monical Pizza's standard signage package on the Premises, subject only to the provisions of governing local sign and zoning ordinances.
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- Tenant expressly authorizes Landlord to provide MONICAL PIZZA CORPORATION all sales and other information Landlord may have obtained or received relating to the operation of the Franchised Restaurant at the Premises, as MONICAL PIZZA CORPORATION may request
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- The parties agree that the Premises shall be used only for the operation of a Monical Pizza Restaurant during the entire initial term, and any extension(s), of the Lease.
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- Landlord shall provide MONICAL PIZZA CORPORATION a copy of all proposed lease amendments and assignments and related documents at the same time Landlord provides them to Tenant, and a copy of all letters and notices Landlord sends to Tenant relating to the Lease or the Premises;
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- Landlord shall not amend or otherwise modify the Lease in any manner that would affect any of the foregoing provisions set forth above without MONICAL PIZZA CORPORATION'S prior written consent.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
Based on the 2025 Monicals Pizza Franchise Disclosure Document, while there is mention of indemnification, the provided excerpts do not explicitly state whether the franchisee's indemnification obligations extend to breaches of the lease for the Approved Location. Item 11.3 refers to indemnification but the full context is not provided in the excerpt.
However, the FDD excerpts do provide some information regarding the lease agreement. According to Item 23, the landlord is required to provide Monicals Pizza with any written notice of default given to the tenant (franchisee). Monicals Pizza also has the right, but not the obligation, to cure any deficiency under the lease if the tenant fails to do so. Additionally, the franchisee is required to assign its interest in any lease to Monicals Pizza upon termination or expiration of the franchise agreement.
To fully understand the scope of indemnification, a prospective Monicals Pizza franchisee should review the complete Item 11.3 in the Franchise Agreement and seek clarification from the franchisor regarding specific scenarios related to lease breaches. It would be prudent to consult with a legal professional to fully understand the potential liabilities and obligations related to the lease and indemnification.