What Indiana laws are recognized in the addendum to the Monicals Pizza Area Development Agreement?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
| This Addendum to the Area Development Agreement is agreed to this day of, 20, by and between Monical Pizza Corporation and | ||||
|---|---|---|---|---|
| 1. | In recognition of the requirements of the Indiana Deceptive Franchise Practices Law, IC 23-2.2.7 and the Indiana Franchise Disclosure Law, IC 23-2-2-2.5, the Area Development Agreement for Monical Pizza Corporation is amended as follows: | |||
| | Section 8 of the Area Development Agreement is amended to prohibit unlawful unilateral termination of a franchise unless there is a material violation of the Area Development Agreement and termination is not in bad faith. | |||
| | Section 9.4 of the Area Development Agreement is amended subject to Indiana Code 23-2- 2.7-1(9) to provide that post-term non-competitor covenants shall have geographic limitation of the territory granted to Developer. | |||
| | Section 11.3 of the Area Development Agreement is amended to provide that Developer will not be required to indemnify Franchisor for any liability imposed upon Franchisor as a result of Developer's reliance upon or use of procedures or products, which were required by Franchisor, if such procedures or products were utilized by Developer in the manner required by Franchisor. | |||
| | Section 13.1 of the Area Development Agreement is amended to provide that in the event of a conflict between the laws of Indiana and Illinois, the Indiana Franchise Disclosure Law and/or the Indiana Deceptive Franchise Practices Law will prevail. | |||
| | Section 13.2 of the Area Development Agreement is amended to provide that Developer may commence litigation in Indiana for any cause of action under Indiana law. | |||
| | Section 13.7 of the Area Development Agreement is amended to provide that arbitration between Franchisor and Developer, shall be conducted in Indiana or a site mutually agreed upon. | |||
| 2. | Each provision of this Addendum shall be effective only to the extent that the jurisdictional requirements of the Indiana Law applicable to the provisions are met independently of this Addendum. To the extent this Addendum shall be deemed to be inconsistent with any terms or conditions of said Area Development Agreement or exhibits or attachments thereto, the terms of this Addendum shall govern. IN WITNESS WHEREOF, each of the undersigned hereby acknowledges having read this Addendum, and understands and consents to be bound by all of its terms. MONICAL PIZZA CORPORATION: | Developer: | ||
| By: | By: | |||
| Title: | Title: |
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, the addendum to the Area Development Agreement recognizes the Indiana Deceptive Franchise Practices Law, IC 23-2.2.7, and the Indiana Franchise Disclosure Law, IC 23-2-2-2.5. Several sections of the Area Development Agreement are amended to comply with Indiana law.
Specifically, Section 8 is amended to prohibit unlawful unilateral termination of the franchise unless there is a material violation of the Area Development Agreement and the termination is not in bad faith. Section 9.4 is amended, subject to Indiana Code 23-2-2.7-1(9), to provide that post-term non-compete covenants have a geographic limitation corresponding to the developer's territory. Section 11.3 is amended to state that the developer is not required to indemnify Monicals Pizza for liability resulting from the developer's reliance on procedures or products required by Monicals Pizza, if those procedures or products were used as required.
Furthermore, Section 13.1 is amended to ensure that in the event of a conflict between Indiana and Illinois laws, the Indiana Franchise Disclosure Law and/or the Indiana Deceptive Franchise Practices Law will prevail. Section 13.2 is amended to allow the developer to commence litigation in Indiana for any cause of action under Indiana law. Finally, Section 13.7 is amended to require that arbitration between Monicals Pizza and the developer be conducted in Indiana or at a mutually agreed-upon site.
The addendum clarifies that each provision is effective only to the extent that the jurisdictional requirements of Indiana law are met independently of the addendum. In case of inconsistencies between the addendum and the Area Development Agreement, the terms of the addendum will govern, providing additional protection and clarity for Monicals Pizza developers operating in Indiana.