Under what circumstances can Monicals Pizza terminate the Development Agreement if the developer makes an unauthorized transfer of interest?

According to Monicals Pizza's 2025 Franchise Disclosure Document, Monicals Pizza has the right to immediately terminate the Development Agreement if the developer makes or attempts to make an unauthorized sale, assignment, transfer, conveyance, gift, or encumbrance of any part of its interest in the Development Agreement or an ownership interest in the developer. This action allows Monicals Pizza to terminate the agreement immediately by delivering a notice to the developer.

This provision protects Monicals Pizza from having its development rights transferred to an unapproved party. It ensures that the individuals or entities developing Monicals Pizza restaurants meet the franchisor's standards and qualifications. The immediate termination clause underscores the importance Monicals Pizza places on controlling who is developing their franchise locations.

For a prospective Monicals Pizza developer, this means any transfer of interest, even a gift, without prior authorization from Monicals Pizza, can lead to immediate termination of the Development Agreement. This highlights the need for developers to seek approval from Monicals Pizza before making any changes to ownership or transferring any rights under the agreement. It is essential to maintain open communication with Monicals Pizza and adhere strictly to the terms outlined in the Development Agreement to avoid such a situation.