Does Monicals Pizza require a general release as part of the franchising agreement?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
isfied;
- 18.2.3 Franchisee (and any transferring owners of the Franchise Operating Entity) has executed a General Release, releasing any and all claims against Franchisor, any Affiliate and their officers, directors, shareholders, managers, members, partners, owners and employees (in their corporate and individual capacities) including, without limitation, claims incident to the termination of this Agreement, to the transfer of Franchisee's interest herein, and to the transfer of Franchisee's ownership of all or any part of the Franchise Operating Entity; provided, however, that if a General Release is prohibited by law, Franchisee shall give the maximum release allowed by law;
- 18.2.4 the prospective transferee has satisfied Franchisor that such transferee meets Franchisor's management, business and financial standards, and otherwise possesses the character and capabilities, including business reputation and credit rating, as Franchisor may require to demonstrate ability to conduct the Franchised Restaurant;
- 18.2.5 the transferee and, if Franchisor requires, all persons owning any interest in any entity that is to become a Franchise Operating Entity, have executed the then-current Franchise Agreement for new franchisees, which may be substantially different from this Agreement, including different Royalty Fee and Marketing Fund Contribution rates and other material provisions, and the franchise agreement then executed shall be for the term specified in such agreement. Notwithstanding the foregoing, any franchisee holding a franchise agreement on April 1, 2008 may on one occasion transfer that franchise agreement to a transferee who shall then be entitled to retain, for so long as that transferee holds a franchise agreement from Franchisor, the four percent (4%) royalty rate in effect on April 1, 2008. All of the other terms and provisions
of the then current Franchise Agreement (as of the date of the transfer) shall be fully effective against the transferee;
- 18.2.6 the transferee has executed a General Release, releasing any and all claims against Franchisor and its officers, directors, shareholders, managers, members, partners, owners and employees (in their corporate and individual capacities) with respect to any representations regarding the Franchise or the business conducted pursuant thereto or any other matter that may have been made to the transferee by Franchisee and/or Franchisor;
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to the 2025 Monicals Pizza Franchise Disclosure Document, a general release is required in specific circumstances. In California, franchisees must sign a general release if they renew or transfer their franchise, although California law voids waivers of rights under the Franchise Investment Law and the Franchise Relations Act.
Outside of California, a general release is required from the Developer (and any transferring owners) when transferring ownership of development rights. This release covers all claims against Monicals Pizza, including its equity owners, officers, directors, and employees, in their corporate and individual capacities, addressing any matters related to the termination of the Development Agreement or the transfer of the Developer's interest. The prospective transferee must also execute a General Release releasing any and all claims against Franchisor and its equity owners, officers, directors and employees, in their corporate and individual capacities, with respect to any representations regarding the Franchise or the business conducted pursuant thereto or any other matter that may have been made to the transferee by Developer.
Additionally, when transferring a franchise, the franchisee (and any transferring owners of the Franchise Operating Entity) must execute a General Release, releasing all claims against Monicals Pizza, its affiliates, and their officers, directors, shareholders, managers, members, partners, owners, and employees. This release covers claims related to the termination of the agreement, the transfer of the franchisee's interest, and the transfer of ownership of the Franchise Operating Entity. However, if a General Release is prohibited by law, the franchisee must provide the maximum release allowed by law. These releases are intended to protect Monicals Pizza from potential legal liabilities during transitions of ownership or rights.