Under what circumstances can the Monicals Pizza Franchise Agreement be modified?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in the Development Agreement | Summary agreements related to the transfer; you or the transferee pay a transfer fee equal to $10,000; the transferee or the owners of transferee have agreed to be personally bound by all provisions of the Development Agreement; the transferee has obtained all necessary consents and approvals of third parties; and you or all of your equity owners have signed a nondisclosure and non-competition agreement in a form acceptable to us and the same as or substantially similar to the Nondisclosure and Non-Competition Agreement attached to the Franchise Agreement. |
|---|---|---|
| n. Franchisor's right of first refusal to acquire developer's development rights | Section 7.5 | We may match an offer for your development rights or an ownership interest you propose to sell. |
| o. Franchisor's option to | Not Applicable | |
| purchase developer's | ||
| development rights | ||
| p. Death or disability of | Not Applicable | |
| developer | ||
| q. Non-competition | Not Applicable | |
| covenants during the | ||
| term of the | ||
| Development | ||
| Agreement | ||
| r. Non-competition covenants after the Development Agreement is terminated or expires | Section 9.4 | The Development Agreement incorporates by reference the post-term non-competition covenants of the Franchise Agreement. |
| s. Modification of the | Section 12.8 | The Development Agreement can be modified |
| agreement | only by written agreement between you and us. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 32–41)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, the Development Agreement, not the Franchise Agreement, can be modified. The Development Agreement can only be modified by a written agreement between Monicals Pizza and the franchisee.
This requirement for written modification provides clarity and legal protection for both Monicals Pizza and its franchisees. It ensures that any changes to the Development Agreement are documented and agreed upon by both parties, reducing the potential for misunderstandings or disputes in the future.
This is a fairly standard clause in franchise agreements. Franchisees should pay close attention to this section of the Development Agreement, as any verbal agreements or understandings that are not put in writing may not be enforceable. Franchisees should ensure they fully understand the implications of any proposed modifications before signing a written agreement.