What right does Monicals Pizza have regarding the lease for the approved location of a Monicals Pizza franchise?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Landlord agrees that MONICAL PIZZA CORPORATION, or a Franchisee of MONICAL PIZZA CORPORATION selected by MONICAL PIZZA CORPORATION, shall have the right to receive an assignment of this Lease upon the transfer, termination or expiration of the Franchise Agreement between MONICAL PIZZA CORPORATION and Tenant. Upon such transfer, termination or expiration of said Franchise Agreement, Landlord shall promptly execute an acknowledgment of and consent to the assignment of the Lease. Any such assignment shall be acknowledged without payment of any assignment fee or similar charge and without a requirement for the payment of an additional security deposit or any increase in rent or other fees. Landlord agrees that, before the effective date of any assignment of the lease to MONICAL PIZZA CORPORATION or its designee, Tenant shall be solely responsible for all obligations, debts and payments under the lease. Tenant shall not be entitled to a return of its security deposit;
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- Landlord shall provide MONICAL PIZZA CORPORATION, its Franchisee, or its agents, employees or contractors, full access to the Premises upon the expiration or termination of either the Lease or Franchise Agreement, for a period of fifteen days to de-identify and remove from the Premises any trademarked property, proprietary software, equipment, and any and all furniture and fixtures installed by the Tenant or installed in connection with the Lease. MONICAL PIZZA CORPORATION, or an approved franchisee for the Premises, shall have the right, but not the obligation to repaint any portion of the interior of the Premises. Landlord acknowledges that MONICAL PIZZA CORPORATION has a prior right, title and interest in and to any such trademarked property, proprietary software, equipment, and furniture and fixtures, notwithstanding any agreement between the Landlord and any lender of the Landlord with respect thereto.
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- Landlord shall provide any written Notice of Default of Tenant to MONICAL PIZZA CORPORATION simultaneously with the delivery thereof to Tenant. Such notice shall be delivered to MONICAL PIZZA CORPORATION in writing by overnight delivery by FedEx or other nationally recognized overnight courier. Landlord and Tenant hereby acknowledge and agree that MONICAL PIZZA CORPORATION shall have the right for fifteen (15) days after the expiration of the period given to Tenant to cure any deficiency under the Lease, to cure such deficiency if Tenant should fail to do so. In no event is MONICAL PIZZA CORPORATION obligated to cure such deficiency. All notices shall be sent to: MONICAL PIZZA CORPORATION, Attn: Janelle Reents, President, 530 N. Bradley Blvd., Bradley, IL 60915.
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- Landlord grants Tenant and any successor franchisee of MONICAL PIZZA CORPORATION the right to display the registered trademark Monical Pizza's standard signage package on the Premises, subject only to the provisions of governing local sign and zoning ordinances.
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- Tenant expressly authorizes Landlord to provide MONICAL PIZZA CORPORATION all sales and other information Landlord may have obtained or received relating to the operation of the Franchised Restaurant at the Premises, as MONICAL PIZZA CORPORATION may request
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- The parties agree that the Premises shall be used only for the operation of a Monical Pizza Restaurant during the entire initial term, and any extension(s), of the Lease.
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- Landlord shall provide MONICAL PIZZA CORPORATION a copy of all proposed lease amendments and assignments and related documents at the same time Landlord provides them to Tenant, and a copy of all letters and notices Landlord sends to Tenant relating to the Lease or the Premises;
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- Landlord shall not amend or otherwise modify the Lease in any manner that would affect any of the foregoing provisions set forth above without MONICAL PIZZA CORPORATION'S prior written consent.
This Addendum amends the Lease between the parties described hereinabove; and except as provided herein, all other terms of said Lease shall remain unchanged.
DATED this day of, LANDLORD: TENANT:
EXHIBIT 5 TO THE FRANCHISE AGREEMENT
HOLDERS OF LEGAL OR BENEFICIAL INTEREST IN FRANCHISE OPERATING ENTITY;
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to the 2025 Monicals Pizza Franchise Disclosure Document, Monicals Pizza has several rights regarding the lease of an approved location. Monicals Pizza has the right to receive an assignment of the lease upon the transfer, termination, or expiration of the Franchise Agreement between Monicals Pizza and the tenant, without any assignment fees or increased costs. The landlord must acknowledge and consent to this assignment. Monicals Pizza also has the right to access the premises for fifteen days after the lease or franchise agreement expires to remove trademarked property and equipment. The landlord must also provide Monicals Pizza with any default notices sent to the tenant.
Monicals Pizza has the right to cure any deficiency under the lease if the tenant fails to do so, within fifteen days after the period given to the tenant. The landlord must provide Monicals Pizza with copies of all proposed lease amendments, assignments, letters, and notices sent to the tenant. The landlord cannot modify the lease in a way that affects these provisions without Monicals Pizza's written consent. Additionally, upon termination or expiration of the franchise agreement, the franchisee must assign its interest in the lease to Monicals Pizza, or sublease if assignment is prohibited, and take necessary actions to cancel or assign any assumed name registrations containing "MONICAL'S PIZZA®".
These stipulations protect Monicals Pizza's interests in maintaining control over locations operating under its brand. By securing assignment rights and access to lease information, Monicals Pizza can ensure continuity of operations or re-establish a franchise at the location. The ability to cure defaults and control lease modifications further safeguards Monicals Pizza's investment and brand reputation. These terms are designed to minimize disruptions and maintain brand consistency, which is a common practice in franchising to protect the franchisor's brand and system standards.