Who is responsible for the expenses associated with relocating a Monicals Pizza restaurant?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall not relocate the Franchised Restaurant without the prior written consent of Franchisor. If the lease for the Approved Location expires or terminates through no fault of Franchisee or if the Franchised Restaurant's premises are destroyed, condemned or otherwise rendered unusable through no fault of Franchisee, Franchisee may request the right to relocate the Franchised Restaurant either permanently or temporarily as appropriate under the circumstances and Franchisor shall not unreasonably withhold its consent to such relocation. Should Franchisee desire to relocate the Franchised Restaurant for any other reason, Franchisee shall request the right and Franchisor may approve or disapprove such request. Any relocation of the Franchised Restaurant shall be at Franchisee's sole expense, and shall proceed in accordance with the requirements set forth in Sections 5.1 through 5.7. Franchisor has the right to charge Franchisee for any costs incurred by Franchisor in providing assistance to Franchisee, including, but not limited to, legal and accounting fees. Notwithstanding the foregoing, Franchisor has no obligation to provide relocation assistance. If Franchisor and Franchisee do not agree upon a substitute site within ninety (90) days after the lease expires or is terminated or the Approved Location is rendered unusable, this Agreement shall terminate as provided in Section 16.2.1.1.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, the franchisee is responsible for all expenses associated with relocating their restaurant. The FDD states that any relocation of the Franchised Restaurant shall be at the Franchisee's sole expense. This includes both temporary and permanent relocations.
Even if the relocation is due to circumstances outside the franchisee's control, such as the expiration of the lease or damage to the premises, the franchisee still bears the financial burden of the move. The franchisor, Monicals Pizza, may offer assistance, but they are not obligated to do so. If Monicals Pizza does provide assistance, they have the right to charge the franchisee for any costs they incur, including legal and accounting fees.
This arrangement places the financial risk of relocation squarely on the franchisee. A prospective franchisee should carefully consider the potential costs of relocation, including site selection, construction, and moving expenses, and factor these into their financial projections. It would be prudent to discuss potential relocation scenarios and the level of support Monicals Pizza might offer in such situations during the due diligence process.