Is Monicals Pizza representing or guaranteeing the profitability or success of the Franchised Restaurant at the Approved Location?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
.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.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, Monicals Pizza does not guarantee the success or profitability of a franchised restaurant at any approved location. The FDD emphasizes that the franchisee is undertaking the business venture at their own risk, acknowledging that success depends on their abilities and efforts, among other factors.
The document states that Monicals Pizza makes no express or implied representations or warranties regarding the potential success of the business. Prospective franchisees must acknowledge that they have not received or relied on any guarantees about revenues, profits, or the likelihood of success. Furthermore, franchisees agree that any representations made by Monicals Pizza are contained within the Franchise Disclosure Document and the Franchise Agreement itself.
Monicals Pizza may provide general guidelines to assist franchisees in selecting a site, and the franchisor must approve the location. However, this assistance and approval do not constitute a guarantee of profitability or success. The franchisee bears the sole responsibility for identifying an appropriate location.
This lack of guarantee is standard practice in the franchise industry, as the success of a franchise depends heavily on the individual franchisee's management skills, local market conditions, and other factors outside the franchisor's direct control. Therefore, prospective Monicals Pizza franchisees should conduct thorough due diligence, including market research and financial planning, before investing in a franchise.