Does reading the Monicals Pizza disclosure document create any agreement, acknowledgement, or representation with the franchisor or its affiliates?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
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24.2 Consultation by Franchisee
Franchisee represents that it has been urged to consult with its own advisors with respect to the legal, financial and other aspects of this Agreement, the business franchised hereby and the prospects for such business. Franchisee represents that it has either consulted with such advisors or has deliberately declined to do so.
24.3 True and Accurate Information
Franchisee represents that all information set forth in any and all applications, financial statements and submissions to Franchisor is true, complete and accurate in all respects, and Franchisee acknowledges that Franchisor is relying upon the truthfulness, completeness and accuracy of such information.
24.4 No Violation of Other Agreements
Franchisee represents that its execution of this Agreement will not violate any other agreement or commitment to which Franchisee or any holder of a legal or beneficial interest in Franchisee is a party.
24.5 Risk
Franchisee represents that it has conducted an independent investigation of the business contemplated by this Agreement and acknowledges that, like any other business, an investment in a Monical's Restaurant involves business risks and that the success of the venture is dependent, among other factors, upon the business abilities and efforts of Franchisee. Franchisor makes no representations or warranties, express or implied, in this Agreement or otherwise, as to the potential success of the business venture contemplated hereby.
24.6 No Guarantee of Success
Franchisee represents and acknowledges that it has not received or relied on any guarantee, express or implied, as to the revenues, profits or likelihood of success of the Franchised Restaurant. Franchisee acknowledges and agrees that there have been no representations by Franchisor or anyone on behalf of Franchisor that are not contained in, or are inconsistent with, the statements made in the Franchise Disclosure Document and this Agreement.
IN WITNESS WHEREOF, the parties hereto, intending to be legally bound hereby have duly executed this Agreement.
| December 31, 2024 is as follows: | |||
|---|---|---|---|
| 2025 | $ 8,684 | ||
| 2026 | 8,684 | ||
| 2027 | 8,684 | ||
| 2028 | 8,684 | ||
| 2029 | 8,684 |
EXHIBIT 1 TO THE FRANCHISE AGREEMENT
GENERAL RELEASE
| The following table summarizes the values of the assets acquired at the acquisition date: | | | |---|---|---| | | Inventory | $3,000 | This General Release constitutes the entire agreement between the parties with respect to the subject matter hereof. This General Release supersedes any prior agreements, negotiations and discussions between Releasor and Releasee. This General Release cannot be altered or amended except by an agreement in writing signed by the duly authorized representatives of the parties.
including, without limitation, claims arising under federal, state and local laws, rules and ordinances, .
Releasor shall reimburse Releasee for any and all costs and reasonable attorney fees incurred by Releasee in the enforcement of the terms of this General Release, whether or not suit shall be required.
This General Release shall be effective as of the date executed and shall be binding upon the successors and assigns of the parties and shall inure to the benefit of Releasee, its affiliates and their successors and assigns.
This General Release shall be governed by and construed in accordance with the laws of the State of Illinois, without resort to its choice of law provisions.
This General Release shall not be amended or modified unless such amendment or modification is in writing and is signed by Releasor and Releasee.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to the 2025 Monicals Pizza Franchise Disclosure Document, the document itself does not create an agreement. However, the document states that both the franchisee and the developer (if entering into an area development agreement) make several representations and acknowledgements upon signing the franchise agreement or development agreement. These representations cover various aspects of the franchise relationship.
For franchisees, these representations include acknowledging that they have been urged to seek advice from their own advisors, confirming the accuracy of all information provided to Monicals Pizza, and stating that entering the agreement does not violate any other agreements they are a party to. Franchisees also acknowledge the risks involved in the business and that Monicals Pizza has not guaranteed the restaurant's success.
Similarly, developers under an area development agreement make similar representations, including confirming they've been urged to seek advice, ensuring the accuracy of provided information, acknowledging business risks, and understanding that there are no guarantees of success. These representations are critical, as Monicals Pizza relies on them when granting a franchise or development rights.
In essence, while reading the FDD alone doesn't bind a prospective franchisee, signing the franchise or development agreement triggers legally binding representations and acknowledgements. These clauses aim to protect Monicals Pizza by ensuring franchisees and developers understand the nature of the investment and have conducted their own due diligence.