What is the standard of care required of a Monicals Pizza developer?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
This Development Agreement does not establish a fiduciary relationship between the parties. Unless otherwise specifically provided in this Development Agreement with respect to certain issues, whenever this Development Agreement requires Developer to obtain Franchisor's written consent or permits Franchisor to take any action or refrain from taking any action, Franchisor is free to act in its own self-interest without any obligation to act reasonably, to consider the impact on Developer or to act subject to any other standard of care limiting Franchisor's right, except as may be provided by statute or regulation.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, the Development Agreement between the franchisor and developer does not establish a fiduciary relationship. This means Monicals Pizza is not obligated to act in the developer's best interest.
Specifically, unless the Development Agreement states otherwise for certain issues, Monicals Pizza can act in its own self-interest. The franchisor does not have to act reasonably or consider the impact on the developer when the agreement requires the developer to obtain Monicals Pizza's written consent, or when the agreement permits Monicals Pizza to take or refrain from taking any action.
This clause essentially allows Monicals Pizza to prioritize its own business objectives, without necessarily considering the developer's individual circumstances, except as required by law. A prospective developer should carefully consider this aspect and seek legal counsel to fully understand the implications of this provision.