What representation does the Developer make regarding the holders of legal or beneficial interest in the Developer, upon which Monicals Pizza relies when entering into the Development Agreement?

According to the 2025 Monicals Pizza Franchise Disclosure Document, all individuals or entities holding a legal or beneficial interest of five percent (5%) or greater in the Developer are required to execute and deliver an Unlimited Guaranty and Assumption of Obligations to Monicals Pizza. This agreement, attached as Exhibit B to the Development Agreement, stipulates that these holders assume and discharge all of the Developer's obligations under the Development Agreement and are personally liable for them.

This requirement ensures that Monicals Pizza has recourse to the personal assets of the individuals or entities with a significant stake in the development company, providing an additional layer of security for Monicals Pizza. By having these individuals or entities guarantee the Developer's obligations, Monicals Pizza reduces its risk in case the Developer fails to meet its commitments under the Development Agreement.

Prospective Monicals Pizza developers should be aware that any investor or entity holding 5% or more of their company will be required to sign this guarantee, making them personally liable for the development obligations. This could impact the developer's ability to attract investors or structure their ownership. The developer should carefully review Exhibit B and understand the full scope of the obligations they and their stakeholders will be assuming.