Under what circumstances can Monicals Pizza terminate the Development Agreement without cause?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in the Development Agreement | Summary |
|---|---|---|
| e. Termination by | Section 9.1 | Termination of any of your Franchise |
| franchisor without | Agreements, will constitute termination of your | |
| cause | Development Agreement for cause. |
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 company can terminate the Development Agreement without cause if any of the franchisee's Franchise Agreements are terminated. This is according to Item 17, which summarizes the conditions under which the Development Agreement can be terminated.
This means that if a Monicals Pizza franchisee has multiple franchise agreements under a development agreement, and any one of those franchise agreements is terminated for any reason, Monicals Pizza has the right to terminate the entire development agreement. This could have significant implications for a developer, as the loss of one franchise could jeopardize the entire development plan.
Prospective franchisees should carefully consider the terms of the franchise agreements and the potential consequences of termination before entering into a development agreement with Monicals Pizza. It would be prudent to seek legal counsel to fully understand the risks and obligations involved.