What is the purpose of the addendum to the Area Development Agreement for Monicals Pizza?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
e: | | Title: | |
FOR THE STATE OF HAWAII
| between Monical Pizza Corporation and | This Addendum to the Area Development Agreement is agreed to this day of, 20, by and | ||
|---|---|---|---|
| 1. | In recognition of the requirements of the Hawaii Franchise Investment Law, Hawaii Revised Statutes, | ||
| Title 26, Chapter 482E et seq., the Area Development Agreement for Monical Pizza Corporation is amended as follows: | |||
| | Hawaii Franchise Investment Law, the Hawaii Franchise Investment Law will control. | The Hawaii Franchise Investment Law provides rights to you concerning non-renewal, | |
| termination and transfer of the Area Development Agreement. If the Area Development | |||
| Agreement, and more specifically its Section 8, contains a provision that is inconsistent with | |||
| 2. | Each provision of this Addendum shall be effective only to the extent that the jurisdictional | ||
| requirements of the Hawaii Franchise Investment 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. | |||
| understands and consents to be bound by all of its terms. | IN WITNESS WHEREOF, each of the undersigned hereby acknowledges having read this Addendum and | ||
| MONICAL PIZZA CORPORATION: | Developer: | ||
| By: | By: | ||
| Title: | Title: |
FOR THE STATE OF ILLINOIS
| between Monical Pizza Corporation and | This Addendum to the Area Development Agreement is agreed to this day of, 20, by and | |
|---|---|---|
| 1. | Illinois law governs the Franchise Agreement. | |
| 2. | agreement may provide for arbitration to take place outside of Illinois. | In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However, a franchise |
| 3. | with the Illinois Franchise Disclosure Act or any other law of Illinois is void. | Your rights upon Termination and Non-Renewal of an agreement are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act. In conformance with section 41 of the Illinois Franchise Disclosure Act, any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance |
| 4. | RENEWAL TERM) TO BRING YOUR RESTAURANT INTO COMPLIANCE. | IF THE FRANCHISOR DECIDES TO MAKE CHANGES TO ITS SYSTEM (SUCH AS NEW EQUIPMENT, FIXTURES, SOFTWARE AND/OR TRADEMARKS), YOU MAY BE REQUIRED TO SPEND UP TO $50,000 DURING THE 5-YEAR TERM OF YOUR FRANCHISE AGREEMENT (AS WELL AS EACH 5-YEAR |
| understands and consents to be bound by all of its terms. | IN WITNESS WHEREOF, each of the undersigned hereby acknowledges having read this Addendum and | |
| MONICAL PIZZA CORPORATION: | Developer: | |
| By: | By: | |
| Title: | Title: |
FOR THE STATE OF INDIANA
| 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: |
FOR THE STATE OF MARYLAND
| between Monical Pizza Corporation and | This Addendum to the Area Development Agreement is agreed to this day of, 20, by and | |
|---|---|---|
| 1. | In recognition of the requirements of the Maryland Franchise Registration and Disclosure Law, Md. | |
| as follows: | Code Ann., Bus. Reg. §§14-201-14-233, the Area Development Agreement for Monical Pizza Corporation is amended | |
| | Section 13.1 of the Area Development Agreement is amended to provide that in the event of a conflict of laws, the Maryland Franchise Registration and Disclosure Law will prevail. | |
| | Franchise Registration and Disclosure Law. |
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 is designed to ensure compliance with specific state franchise laws. These addenda acknowledge the legal requirements of states like New York, Indiana, Maryland, and Minnesota, modifying the Area Development Agreement to align with their respective franchise regulations.
For instance, the addendum for New York addresses the state's General Business Law, while the Indiana addendum references the Indiana Deceptive Franchise Practices Law and the Indiana Franchise Disclosure Law. Similarly, the Maryland addendum acknowledges the Maryland Franchise Registration and Disclosure Law, and the Minnesota addendum recognizes the Minnesota Franchise Law.
These addenda modify specific sections of the Area Development Agreement to protect the developer's (franchisee's) rights and ensure that Monicals Pizza complies with local laws. This includes provisions related to termination rights, non-compete covenants, indemnification, choice of law, litigation venues, and required notices. The addenda also clarify that their terms will govern in case of any inconsistencies with the original Area Development Agreement, but only to the extent that the jurisdictional requirements of the relevant state law are independently met.
Ultimately, the purpose of these addenda is to create a legally sound and state-specific agreement that protects both Monicals Pizza and its area developers, ensuring compliance with varying state franchise laws. Prospective franchisees should carefully review the addendum specific to their state to understand their rights and obligations under the Area Development Agreement.