What is the maximum expenditure a Monicals Pizza franchisee is required to make for changes, additions, or modifications to the System during the first year of the agreement term?
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 required to implement changes or modifications to the Monicals Pizza system. However, during the first year of the franchise agreement, the franchisee will not be required to spend more than one dollar on these changes. This limit applies to changes, additions, or modifications to the System that Monicals Pizza may reasonably require.
This provision protects new Monicals Pizza franchisees from significant unexpected costs related to system-wide changes during their initial year of operation. It allows them to focus on establishing their business without the worry of large, mandatory upgrade expenses. The FDD specifies that this expenditure limit does not include repairs and maintenance, which are covered separately.
It is important to note that while the initial expenditure limit is minimal, Monicals Pizza franchisees may face more substantial costs for system modifications in subsequent years. The FDD states that the expenditure limit increases to $50,000 in the aggregate during the initial term or any renewal term of the agreement. Franchisees should carefully consider these potential future costs and factor them into their long-term financial planning.