What is the timeframe for maintaining a Designated Manager after the death or incapacity of a Monicals Pizza franchisee?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
18.6.1 Upon the death or Incapacity of Franchise (if Franchisee is an individual) or any holder of a legal or beneficial interest in Franchisee (if Franchisee is a business entity), the appropriate representative controlling such person (whether administrator, personal representative or trustee) shall, within a reasonable time not exceeding one hundred eighty (180) days following such event, transfer such individual's interest in the Franchised Restaurant or in the Franchise Operating Entity to a third party who is either (a) another Franchisee and/or owner of the Franchise Operating Entity or (b) approved by Franchisor. Such transfers, including transfers by will or inheritance, shall be subject to the conditions for assignments and transfers contained in this Agreement, unless prohibited by the laws of the state where such individual resided, provided that the foregoing provision regarding governing law shall be applicable only for this Section 18.6. During such one hundred eighty (180) day period, the Franchised Restaurant must remain at all times under the primary management of a Designated Manager who otherwise meets Franchisor's management qualifications.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, in the event of the death or incapacity of a franchisee, their representative has a period not exceeding 180 days to transfer the franchisee's interest to a qualified third party. During this 180-day period, the Monicals Pizza restaurant must be under the primary management of a Designated Manager who meets Monicals Pizza's management qualifications.
This requirement ensures the continued smooth operation of the Monicals Pizza restaurant during the transition period. It maintains brand standards and customer service levels. The Designated Manager plays a crucial role in upholding the Monicals Pizza standards during this time.
If the representative fails to transfer the interest within the 180-day timeframe or fails to maintain a qualified Designated Manager, Monicals Pizza has the right to terminate the franchise agreement. This underscores the importance of having a succession plan in place and ensuring that a qualified manager is available in case of death or incapacity. It is also important to note that Monicals Pizza has the option, but not the obligation, to assume operations of the restaurant until the transfer takes place, charging a management fee of $500 per day plus expenses not covered by the restaurant's cash flow.