What is required of the developer regarding the Monicals Pizza Addendum?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
| between Monical Pizza Corporation and | This Addendum to the Area Development Agreement is agreed to this day of, 20, by and | |
|---|---|---|
| 1. | In recognition of the requirements of New York's General Business Law, Article 33, §§680 through | |
| 695, the Area Development Agreement for Monical Pizza Corporation is amended as follows: | ||
| | Section 7.1 of the Area Development Agreement is amended to provide that Franchisor will | |
| not transfer and assign its rights and obligations under the Area Development Agreement | ||
| unless the transferee will be able to perform the Franchisor's obligations under the Area | ||
| Development Agreement, in Franchisor's good faith judgment, so long as it remains subject | ||
| to Article 33 of the General Business Law of the State of New York. | ||
| | No provision in the Area Development Agreement shall be construed as requiring Developer | |
| General Business Law of the State of New York. | to waive any right conferred upon the Developer by the provisions of Article 33 of the | |
| | Section 8 of the Area Development Agreement is amended to provide that the Developer may | |
| terminate the Area Development Agreement on any grounds available by law. | ||
| 2. | or exhibits or attachments thereto, the terms of this Addendum shall govern. | Each provision of this Addendum shall be effective only to the extent that the jurisdictional |
| requirements of the New York Law applicable to the provisions are met independently of this Addendum. To the extent | ||
| this Addendum shall be deemed to be inconsistent with any terms or conditions of said Area Development Agreement | ||
| 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: | Developer: | |
| By: | By: | |
| Title: | Title: |
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to the 2025 Monicals Pizza Franchise Disclosure Document, the developer is required to acknowledge having read the addendum to the Area Development Agreement and consent to be bound by its terms. This requirement is consistent across addenda for various states, including New York, California, Indiana, and Hawaii.
The addendum serves to amend the Area Development Agreement in recognition of specific state laws, such as New York's General Business Law, California's Franchise Investment Law and Franchise Relations Act, Indiana's Deceptive Franchise Practices Law and Franchise Disclosure Law, and Hawaii's Franchise Investment Law. These amendments address issues like transfer of rights, franchisee rights, termination conditions, non-compete covenants, litigation venues, and governing laws, ensuring compliance with local regulations.
By signing the addendum, the developer acknowledges that they understand how the Area Development Agreement is modified by the addendum to comply with local laws. If there are inconsistencies between the Area Development Agreement and the addendum, the terms of the addendum will take precedence. This ensures that the Monicals Pizza franchise operates in accordance with the legal requirements of the specific state, providing a level of protection and clarity for the developer.