factual

Under what circumstances can Monicals Pizza terminate the franchise agreement without allowing the franchisee an opportunity to cure?

Monicals_Pizza Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 16.2.1 Franchisor has the right to terminate this Agreement, without any opportunity to cure by Franchisee, if Franchisee:

  • 16.2.1.1 fails to select an approved site for, or establish, equip and commence operations of, the Franchised Restaurant pursuant to Section 5, or if Franchisor and Franchisee do not agree upon a substitute site pursuant to Section 5.9;

  • 16.2.1.2 fails to have its Designated Manager satisfactorily complete the initial training program pursuant to Section 8;

  • 16.2.1.3 made any material misrepresentation or omission in its application for the Franchise or otherwise to Franchisor in the course of entering into this Agreement;

  • 16.2.1.4 is convicted of or pleads no contest to a felony or other crime or offense that is likely to adversely affect the reputation of Franchisor, Franchisee or the Franchised Restaurant;

  • 16.2.1.5 after notice to cure, fails to refrain from activities, behavior or conduct likely to adversely affect the reputation of Franchisor, Franchisee or the Franchised Restaurant;

  • 16.2.1.6 discloses, duplicates or otherwise uses in an unauthorized manner any portion of the Confidential Operations Manual or any Trade Secret or other Confidential Information;

  • 16.2.1.7 abandons, fails or refuses to actively operate the Franchised Restaurant for five (5) or more consecutive days (unless the Franchised Restaurant has not been operational for a purpose approved by Franchisor);

  • 16.2.1.8 surrenders or transfers control of the operation of the Franchised Restaurant, makes or attempts to make an unauthorized direct or indirect assignment of the Franchise or of an ownership interest in Franchisee, or fails or refuses to assign the Franchise or the interest in Franchisee of a deceased or incapacitated owner thereof, as herein required;

Source: Item 23 — RECEIPTS (FDD pages 46–257)

What This Means (2025 FDD)

According to Monicals Pizza's 2025 Franchise Disclosure Document, Monicals Pizza can terminate the franchise agreement without allowing the franchisee an opportunity to cure under specific circumstances. These circumstances include failing to select an approved site or establish and equip the Franchised Restaurant, or if Monicals Pizza and the franchisee cannot agree on a substitute site.

Additionally, Monicals Pizza can terminate the agreement without an opportunity to cure if the franchisee's Designated Manager does not satisfactorily complete the initial training program. The agreement can also be terminated without opportunity to cure if the franchisee made any material misrepresentation or omission in their application for the franchise.

Further reasons for immediate termination involve illegal or damaging actions. If the franchisee is convicted of or pleads no contest to a felony or other crime that could negatively affect the reputation of Monicals Pizza, the franchisee, or the Franchised Restaurant, Monicals Pizza can terminate the agreement. Similarly, if the franchisee discloses or uses the Confidential Operations Manual, Trade Secrets, or other Confidential Information in an unauthorized manner, or abandons or refuses to actively operate the Franchised Restaurant for five or more consecutive days, Monicals Pizza can terminate the agreement without allowing an opportunity to cure. Finally, if the franchisee surrenders or transfers control of the operation, makes an unauthorized assignment of the franchise, or fails to assign the franchise of a deceased or incapacitated owner as required, Monicals Pizza can terminate the agreement immediately.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.