What is the maximum aggregate expenditure a Monicals Pizza franchisee is required to make for changes, additions, or modifications to the System during the initial term or any one renewal term of the agreement?
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 Secti
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, a franchisee is generally required to implement changes or modifications to the Monicals Pizza system. However, the maximum expenditure a Monicals Pizza franchisee is required to make for changes, additions, or modifications to the System is $50,000 in the aggregate during the initial term or any one renewal term of the Franchise Agreement. This amount may be increased consistent with increases to the Consumer Price Index.
Notably, the franchisee will only be required to spend one dollar during the first year of the agreement and one dollar during the final year of the agreement if the franchisee provides written notice of its intention not to operate a successor franchise.
These required expenditures for changes or upgrades to the Monicals Pizza system are in addition to any expenditures for repairs and maintenance.