What section of the Monicals Pizza Franchise Agreement outlines the franchisee's right to terminate the agreement?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise or Other Agreement | Summary |
|---|---|---|
| a. Length of franchise | Section 4.1 | The initial term is 5 years. |
| term | ||
| b. Renewal or extension of the term | Section 4.2 | You may renew for 3 additional terms of 5 years each. If you fail to meet any one of the conditions in (c) below, we may refuse to renew or extend the terms of your Franchise Agreement. |
| c. Requirements for franchisee to renew or extend | Section 4.2 and Exhibit 6 | You may renew the then current Franchise Agreement if you: have substantially complied with the provisions of the Franchise Agreement; have made capital expenditures as necessary to maintain uniformity with the System; have satisfied all monetary obligations owed to us; are not in default of any provision of the Franchise Agreement or any other agreement between you and us; have given timely written notice of your intent to renew; sign a current Franchise Agreement, which may have materially different terms and conditions than your original Franchise Agreement; comply with current qualifications and training requirements; and sign a General Release in a form satisfactory to us and similar to the General Release attached to the Franchise Agreement. |
| d. Termination by franchisee | Section 16.1 | You may terminate the Franchise Agreement if you are in compliance with it and we materially breach it and we fail to begin to cure our breach within 30 days of receiving your written notice. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 32–41)
What This Means (2025 FDD)
According to the 2025 Monicals Pizza Franchise Disclosure Document, Section 16.1 of the Franchise Agreement outlines the franchisee's right to terminate the agreement. Specifically, a franchisee may terminate the Franchise Agreement if they are in compliance with it and Monicals Pizza materially breaches it.
However, the franchisee can only terminate if Monicals Pizza fails to begin to cure its breach within 30 days of receiving written notice from the franchisee. This means a franchisee cannot immediately terminate the agreement upon any breach by Monicals Pizza; they must first provide written notice and allow Monicals Pizza a 30-day window to begin correcting the issue.
This clause is important for prospective franchisees as it clarifies the conditions under which they can terminate the agreement, offering a degree of protection if Monicals Pizza fails to uphold its obligations. However, it also highlights the importance of documenting any breaches and providing formal written notice to initiate the cure period.