Regarding Monicals Pizza franchises in Virginia, what section of the Franchise Agreement is amended by this addendum?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
This Addendum to the Franchise Agreement is agreed to this day of, 20, between Monical Pizza Corporation and to amend and revise said Franchise Agreement as follows: seq.). Section 16.2.1.11, which terminates the Franchise Agreement upon the bankruptcy of the Franchisee, may not be enforceable under federal bankruptcy law (11 U.S.C. Section 101, et 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:
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to the 2025 FDD, the addendum for Monicals Pizza franchises in Virginia amends Section 16.2.1.11 of the Franchise Agreement. This section pertains to the termination of the Franchise Agreement in the event of the franchisee's bankruptcy.
The addendum specifies that this particular section "may not be enforceable under federal bankruptcy law." This means that the standard clause allowing Monicals Pizza to terminate the agreement if a franchisee declares bankruptcy might not hold up in court due to federal laws protecting bankrupt individuals and businesses.
For a prospective Monicals Pizza franchisee in Virginia, this addendum offers a degree of protection. It suggests that even in the event of bankruptcy, the franchisee may have legal recourse to prevent the termination of their agreement, aligning the franchise agreement with federal bankruptcy regulations.