After selecting a site for the Franchised Restaurant, what is the required action for the Monicals Pizza franchisee?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
If an Approved Location for the Franchised Restaurant has not been determined as of the Effective Date, Franchisor shall provide Franchisee with general guidelines to assist Franchisee in selecting a site suitable for the Approved Location. Franchisee shall promptly select a site for the Franchised Restaurant and shall notify Franchisor of such selection. Franchisor shall evaluate the site and notify Franchisee of its approval or disapproval of a proposed site within a reasonable time, usually thirty (30) days, after Franchisee notifies Franchisor of the selection of such site. If Franchisor approves of such selection, the site shall be designated as the Approved Location. If Franchisor does not approve of such selection, Franchisee shall select and notify Franchisor of new sites until Franchisor approves a site for the Franchised Restaurant. Franchisor has the right to approve or disapprove a proposed location based on such factors as it deems appropriate, including, without limitation, the condition of the premises, demographics of the surrounding area, proximity to other existing or potential sites for Monical's Restaurants, proximity to Competitive Businesses, lease requirements, traffic patterns, visibility, vehicular and pedestrian access, proximity to major roads, available parking and overall suitability. Franchisee shall not locate the Franchised Restaurant on a selected site without the prior written approval of Franchisor. Franchisor does not represent that it, or any of its Affiliates, owners or employees, have special expertise in selecting sites. Neither Franchisor's assistance in selecting, nor approval of, any Approved Location shall be, or be deemed to be, any representation, guarantee or indication by Franchisor that the Franchised Restaurant will be profitable or successful at the Approved Location. Franchisee is solely responsible for identifying the Approved Location.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, after a franchisee selects a site for their restaurant, they must notify Monicals Pizza of their selection. Monicals Pizza will then evaluate the site and, within a reasonable time frame (typically 30 days), inform the franchisee whether the proposed site is approved or disapproved. If Monicals Pizza disapproves, the franchisee must continue to select and propose new sites until one is approved by Monicals Pizza. The document specifies that franchisees cannot begin operations at a site without prior written approval from Monicals Pizza.
Monicals Pizza has the right to approve or disapprove a location based on factors they deem appropriate. These factors include the condition of the premises, demographics of the surrounding area, proximity to other Monicals Pizza locations or competitors, lease requirements, traffic patterns, visibility, access, proximity to major roads, available parking, and overall suitability. However, Monicals Pizza does not guarantee the location will be profitable or successful.
This process highlights the importance of site selection in the success of a Monicals Pizza franchise. While Monicals Pizza provides general guidelines and has final approval, the franchisee is ultimately responsible for identifying a suitable location. The franchisee bears the risk of delays if initial site selections are rejected, potentially prolonging the time before the restaurant can open. Franchisees should carefully consider Monicals Pizza's criteria and conduct thorough due diligence on potential sites to increase the likelihood of approval.