Is Monicals Pizza required to approve any particular supplier?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
13.1.2 Franchisor shall provide Franchisee, in the Confidential Operations Manual or other written or electronic form, with a list of specifications and a list of Approved Suppliers, and Franchisor may from time to time issue revisions to such list. If Franchisor or an Affiliate is an Approved Supplier, Franchisee shall execute a standard form purchase or supply agreement for the items to be supplied by Franchisor or its Affiliate. If Franchisee desires to utilize any services or products that Franchisor has not approved, or any services or products that require supplier approval, Franchisee shall first provide Franchisor with sufficient information, specifications and samples for Franchisor to determine whether the service or product complies with Franchisor's standards and specifications or the proposed supplier meets its Approved Supplier criteria. Franchisee shall pay all expenses incurred by Franchisor in connection with determining whether it shall approve an item, service or supplier. Franchisor will decide within a reasonable time, usually thirty (30) days after receiving all required information, whether Franchisee may purchase or lease such items or services or from such supplier. Approval of a supplier may be conditioned on, among other things, the supplier's: ability to provide sufficient quantity and quality of products or services at competitive prices; production and delivery capability; and dependability and general reputation. Nothing in this Section shall be construed to require Franchisor to approve any particular supplier, or to require Franchisor to make available to prospective suppliers any standards or specifications that Franchisor deems confidential.
13.1.3 Notwithstanding anything to the contrary in this Agreement, Franchisor has the right to review from time to time its approval of any items or suppliers. Franchisor may revoke its approval of any item, service or supplier at any time by notifying Franchisee and/or the supplier. Franchisee shall, at its own expense, promptly cease using, selling or providing any items or services disapproved by Franchisor and shall promptly cease purchasing from suppliers disapproved by Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, franchisees are required to purchase goods and services from approved suppliers. Monicals Pizza will provide a list of specifications and a list of Approved Suppliers in the Confidential Operations Manual or other written or electronic form, and may revise this list periodically. If Monicals Pizza or an affiliate is an approved supplier, the franchisee must execute a standard purchase or supply agreement for those items.
If a franchisee wants to use a product or service that Monicals Pizza hasn't approved, or that requires supplier approval, the franchisee must give Monicals Pizza enough information, specifications, and samples to decide if the service or product meets their standards. The franchisee will have to pay for any costs Monicals Pizza incurs while assessing the item, service, or supplier. Monicals Pizza will then decide, usually within 30 days of getting all the necessary information, whether the franchisee can buy or lease the item or service from that supplier.
Monicals Pizza can revoke approval of any item or supplier at any time by notifying the franchisee and/or the supplier. The franchisee must then stop using, selling, or buying from the disapproved supplier. However, Monicals Pizza is not required to approve any particular supplier, or to make available to prospective suppliers any standards or specifications that Monicals Pizza deems confidential.
This policy ensures that Monicals Pizza maintains consistent quality and standards across all franchise locations. While it restricts the franchisee's choice of suppliers, it also protects the brand's reputation and potentially offers the benefit of pre-negotiated supply agreements. Franchisees bear the cost of seeking approval for new suppliers, which could be a barrier to introducing innovative or cost-effective alternatives.