What services does Monicals Pizza agree to provide to the franchisee as part of the franchise license?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
rovide. Franchisor may (but is not required to) include at the Monical's Pizza website an intranet section or an interior page containing information about the Franchised Restaurant. If Franchisor includes such information on the Monical's Pizza website, Franchisor has the right to require Franchisee to prepare all or a portion of the section or page, at Franchisee's expense, using a template that Franchisor provides. All such information shall be subject to Franchisor's approval prior to posting. Franchisor retains the sole right to advertise and sell the products and services offered by Monical's Pizza Restaurants and to use the Marks on the Internet, including the use of websites, domain names, uniform resource locators, on-line identifiers, keywords, linking, search engines and search engine optimization techniques, banner ads, meta-tags, marketing, auction sites, e-commerce and co-branding arrangements. Franchisee may be requested to provide content for Franchisor's Internet marketing and shall be required to follow Franchisor's intranet and Internet usage rules, policies and requirements. Franchisor retains the sole right to approve any linking to, or other use of, the Monical's Pizza website.
- 11.5.3 Franchisee may market the Franchised Restaurant by e-mail. Franchisee may only use e-mail addresses obtained from guests of its restaurants or persons in their protected territory who have registered with Monical's for the Monical Dippin' Club or any successor to the Monical Dippin' Club for use in future e-mail marketing activities. "Guests of its restaurants" shall include those guests who are physically present in the restaurant and those persons who provide an e-mail address in the course of placing telephone orders or orders utilizing the internet.
- 11.5.4 Franchisee may engage in text marketing. Franchisee may use only cellphone numbers obtained from guests of its restaurants. "Guests of its restaurants" shall include those guests who are physically present in the restaurant and those guests who have placed telephone orders or on-line orders with Franchisee's restaurant. Franchisee is prohibited from enrolling guests using social media or other digital means (other than in conjunction with its on-line ordering platform). Franchisee may market only to cellphone numbers from those guests that have "opted in" or agreed to be contacted through their cellphones for marketing purposes. This program must be managed by an approved 3rd party vendor.
- 11.5.5 Consistent with Section 11.2.2 above, Franchisee shall submit all on-line advertising and promotional materials to Monical's for its prior approval.
11.6 Telephone Directory Advertising
Franchisee must list the telephone number(s) for the Franchised Restaurant in the "white pages" of any local telephone directories.
12. ACCOUNTING, RECORDS AND REPORTING OBLIGATIONS
12.1 Records
During the term of this Agreement, Franchisee shall maintain full, complete and accurate books, records and accounts in accordance with the standard accounting system prescribed by Franchisor in the Confidential Operations Manual or otherwise in writing. Franchisee shall retain during the term of this Agreement, and for three (3) years thereafter, all books and records related to the Franchised Restaurant including, without limitation, purchase orders, invoices, payroll records, sales tax records, state and federal tax returns, bank statements, cancelled checks, deposit receipts, cash receipts, disbursement journals, general ledgers, and any other financial records designated by Franchisor or required by law.
12.2 Gross Sales Reports
Franchisee shall maintain an accurate record of monthly Gross Sales and shall deliver to Franchisor a statement of Gross Sales signed and verified by Franchisee or Franchisee's chief financial officer ("Gross Sales Report") for each month within ten (10) days of the close of each month in a form that Franchisor approves or provides in the Confidential Operations Manual. The Gross Sales Report for the preceding month must be provided to Franchisor by the close of business on the tenth (10th) day of each month, or such other day as specified in writing by Franchisor. If Franchisor requires Franchisee to pay Royalty Fees through electronic transfer as set forth in Section 3.4, the Gross Sales Reports shall be submitted to Franchisor via facsimile transmission, email or other method designated by Franchisor in writing; otherwise the Gross Sales Reports shall be submitted in paper format to Franchisor accompanied by the Royalty Fee.
12.3 Financial Statements
Franchisee shall supply a balance sheet as of the end of the last day of the preceding month and an income statement for the preceding month and the fiscal year-to-date to Franchisor on or before the last day of each month, in a form approved by Franchisor. Franchisee shall, at its expense, submit to Franchisor within ninety (90) days after the end of each calendar year, an income statement for the calendar year just ended and a balance sheet as of the last day of that calendar year. Such financial statements shall be prepared in accordance with GAAP applied on a consistent basis. If required by Franchisor, such financial statements shall be reviewed or audited by a certified public accountant at Franchisee's expense. Franchisee shall submit to Franchisor such other periodic reports in the manner and at the time specified in the Confidential Operations Manual or otherwise in writing.
12.4 Other Reports
Franchisee shall submit to Franchisor copies of all state sales tax returns that are required to be filed with the appropriate governmental agency and such other records as Franchisor may reasonably request from time to time or as specified in the Confidential Operations Manual. Franchisor has the right to release financial and operational information relating to the Franchised Restaurant to Franchisor's lenders or prospective lenders, or to use or disclose such information in an earnings claim created in connection with the sale of Monical's Pizza Franchises.
Franchisee or Franchisee's chief financial officer shall certify as true and correct all reports submitted pursuant to this Agreement.
12.5 Computer/Point-of-Sale System
Franchisee shall purchase, install, update, maintain and use computer and point-of-sale systems consisting of software in accordance with Franchisor's specifications and hardware in accordance with either the Franchisor's or software vendor's specifications. Franchisor shall have full access to all of Franchisee's computer and point-of-sale data and systems and all related store operational information by means of direct access, either in person and by broadband or other Internet to permit Franchisor to verify Franchisee's compliance with its obligations under this Agreement. If Franchisee uses the system for any other purposes, Franchisee shall have the obligation to partition its system to limit access to its non-operational systems.
12.6 Right to Inspect
Franchisor or its designee has the right to require Franchisee to provide the books, records and tax returns of Franchisee via electronic or other means selected by Franchisor for purposes of inspection, examination, copy and audit. If the audit or any other inspection discloses that any payments to Franchisor have been underpaid, then Franchisee shall immediately pay to Franchisor the amount of the underpayment plus interest from the date such amount was due until paid at the rate of eighteen percent (18%) per annum, or the highest rate allowed by the law of the state where Franchisee is located, whichever is lower. If the inspection should reveal that Franchisee has not spent at least two percent (2%) of its monthly Gross Sales on Local Advertising or if the inspection discloses an underpayment of three percent (3%) or more of the amount due for any period covered by the audit, Franchisee shall, in addition, reimburse Franchisor for any and all costs and expenses connected with the inspection, including, without limitation, travel expenses and reasonable accounting and attorneys' fees. The foregoing remedies shall be in addition to any other remedies Franchisor may have.
12.7 Release of Records
At Franchisor's request, Franchisee shall authorize and direct any third parties, including accounting professionals, to release to Franchisor all accounting and financial records arising from or relating to the operation of the Franchised Restaurant including, but not limited to, records evidencing Gross Sales, profits, losses, income, tax liabilities, tax payments, revenues, expenses, and any correspondence, notes, memoranda, audits, business records, or internal accounts within said third parties' possession, custody or control, and to continue to release such records to Franchisor on a monthly basis during the term of this Agreement or until such time as Franchisor withdraws its request. Franchisee shall execute all documents necessary to facilitate the release of records referenced herein to Franchisor.
13. STANDARDS OF OPERATION
13.1 Authorized Products, Services and Suppliers
13.1.1 Franchisee acknowledges that the reputation and goodwill of the System is based in large part on offering high quality products and services to its customers. Accordingly, Franchisee shall provide, and offer for sale and use at the Franchised Restaurant only those menu items, ingredients, food, beverages, packaging, supplies, signs, equipment and other items and services that Franchisor from time to time approves, and which are not thereafter disapproved, and that comply with Franchisor's specifications and quality standards. If required by Franchisor, any such items or services shall be purchased only from "Approved Suppliers" that Franchisor designates or approves, which might include, or be limited to,
Franchisor or an Affiliate.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Monicals Pizza outlines several services and rights it retains or may provide to franchisees. Monicals Pizza may include information about the franchised restaurant on the Monical's Pizza website, potentially requiring the franchisee to prepare the content at their own expense, subject to the franchisor's approval. The franchisor retains the sole right to advertise and sell products and services offered by Monicals Pizza Restaurants on the Internet and to use related trademarks. Franchisees may be requested to provide content for the franchisor's Internet marketing and must adhere to the franchisor's internet usage rules. Franchisees are allowed to market their specific Monicals Pizza location via email and text marketing, but with specific limitations on how they obtain contact information.
Monicals Pizza also outlines certain obligations and restrictions for franchisees. Franchisees must focus their marketing efforts within their Area of Primary Responsibility and are restricted from advertising in areas that primarily serve other franchisees, with some exceptions for cooperative advertising and online media. The franchisor commits to making reasonable efforts to enforce these restrictions. Upon termination or expiration of the franchise agreement, franchisees are required to remove all signage with Monicals Pizza's name and marks, return leased equipment, pay all outstanding sums, surrender the Confidential Operations Manual, and assign all telephone listings and email addresses to the franchisor.
Additionally, the landlord is instructed to provide Monicals Pizza with any written notice of default of the tenant (franchisee) and allow Monicals Pizza the right to cure any deficiency under the lease if the tenant fails to do so. The landlord also grants the tenant and any successor franchisee the right to display Monical Pizza's standard signage. The landlord is authorized to provide Monicals Pizza with all sales and other information related to the operation of the franchised restaurant. The landlord must provide Monicals Pizza a copy of all proposed lease amendments and assignments and related documents and shall not amend the lease in any manner that would affect any of the provisions without Monicals Pizza's prior written consent.
Monicals Pizza also has specific rights regarding the lease of the premises. Upon the transfer, termination, or expiration of the Franchise Agreement, Monicals Pizza has the right to receive an assignment of the lease. The landlord must provide Monicals Pizza full access to the premises for a period of fifteen days to remove any trademarked property, proprietary software, equipment, and furniture. Monicals Pizza has a prior right to this property, and the landlord must acknowledge this right. These stipulations ensure that Monicals Pizza maintains control over its brand and operational standards, even in situations involving lease transfers or terminations.