For a new Monicals Pizza franchise, who bears the expense of providing a representative for general assistance and guidance during the opening of the Franchised Restaurant?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
uidance
Franchisor shall make a reasonable effort to discuss problems and offer general guidance to Franchisee by telephone, e-mail, facsimile, or other methods with respect to planning, opening and operating the Franchised Restaurant. However, Franchisee shall use its independent judgment to make all business decisions and should not rely solely upon any advice given or statements made by Franchisor. Franchisor shall not charge for this service, however, Franchisor retains the right to refuse to provide, or to charge a fee for, this service should Franchisor deem Franchisee to be utilizing this service too frequently or in an unintended manner. Franchisor's advice or guidance to Franchisee relative to prices for products and services that, in Franchisor's judgment, constitutes good business practice is based upon the experience of Franchisor and its franchisees in operating Monical's Restaurants and an analysis of costs and prices charged for competitive products and services. Franchisee shall have the sole right to determine the prices to be charged by the Franchised Restaurant.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
Based on the 2025 Monicals Pizza Franchise Disclosure Document, the document does not explicitly state who bears the expense of providing a representative for general assistance and guidance during the opening of a franchised restaurant. However, it does state that Monicals Pizza will make a reasonable effort to discuss problems and offer general guidance to the franchisee by telephone, e-mail, facsimile, or other methods with respect to planning, opening, and operating the franchised restaurant. Monicals Pizza does not charge for this service but retains the right to refuse or charge a fee if they deem the franchisee is utilizing the service too frequently or in an unintended manner.
Additionally, the FDD mentions that Monicals Pizza or its representatives may make periodic visits to the franchised restaurant for inspection, consultation, assistance, or guidance. These visits may be announced or unannounced. Following these visits, written reports detailing any problems or concerns and outlining required or suggested changes may be prepared for both Monicals Pizza and the franchisee.
Since the FDD does not specify who bears the expense of a representative for general assistance and guidance during the opening, it is important for a prospective franchisee to clarify this point with Monicals Pizza. Specifically, the franchisee should ask whether there are any costs associated with the initial on-site support provided during the opening phase and if so, what those costs entail.