How long does a Monicals Pizza franchisee have to maintain the Franchised Restaurant under the primary supervision of a Designated Manager following the death or incapacity of Franchisee?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
apacity
18.6.1 Upon the death or Incapacity of Franchise (if Franchisee is an individual) or any holder of a legal or beneficial interest in Franchisee (if Franchisee is a business entity), the appropriate representative controlling such person (whether administrator, personal representative or trustee) shall, within a reasonable time not exceeding one hundred eighty (180) days following such event, transfer such individual's interest in the Franchised Restaurant or in the Franchise Operating Entity to a third party who is either (a) another Franchisee and/or owner of the Franchise Operating Entity or (b) approved by Franchisor. Such transfers, including transfers by will or inheritance, shall be subject to the conditions for assignments and transfers contained in this Agreement, unless prohibited by the laws of the state where such individual resided, provided that the foregoing provision regarding governing law shall be applicable only for this Section 18.6. During such one hundred eighty (180) day period, the Franchised Restaurant must remain at all times under the primary management of a Designated Manager who otherwise meets Franchisor's management qualifications.
18.6.2 Following such a death or Incapacity of such person as described in this Section 18.6, if necessary in Franchisor's discretion, Franchisor shall have the right, but not the obligation, to assume operation of the Franchised Restaurant until the deceased or incapacitated owner's interest is transferred to a third party approved by Franchisor. Franchisor may charge a management fee as stated in the Confidential Operations Manual from time to time, currently equal to FIVE HUNDRED DOLLARS ($500.00) per day, and Franchisor shall further be entitled to reimbursement of any expenses Franchisor incurs that are not paid out of the operating cash flow of the Franchised Res
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, in the event of the death or incapacity of a franchisee, the Franchised Restaurant must remain under the primary management of a Designated Manager for a period not exceeding 180 days. This Designated Manager must meet Monicals Pizza's management qualifications.
During this 180-day period, the representative of the deceased or incapacitated franchisee is expected to transfer the individual's interest in the restaurant to a third party. This third party must be either another Monicals Pizza franchisee/owner or someone approved by Monicals Pizza. The transfer is subject to the standard conditions for assignments and transfers outlined in the franchise agreement, unless prohibited by local laws.
If necessary, Monicals Pizza has the option, but not the obligation, to assume operations of the Franchised Restaurant until the ownership interest is transferred. If Monicals Pizza chooses to operate the restaurant, they can charge a management fee, which is currently $500 per day, as well as reimbursement for any expenses incurred that are not covered by the restaurant's operating cash flow. This ensures the continued operation of the Monicals Pizza restaurant while the transfer of ownership is being finalized.