Under what condition will Monicals Pizza have no liability for the performance of any obligations contained in the Development Agreement?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
and accuracy of such information.
14.4 Risk
DEVELOPER REPRESENTS THAT IT HAS CONDUCTED AN INDEPENDENT INVESTIGATION OF THE BUSINESS CONTEMPLATED BY THIS DEVELOPMENT AGREEMENT AND ACKNOWLEDGES THAT, LIKE ANY OTHER BUSINESS, AN INVESTMENT IN A MONICAL'S RESTAURANT INVOLVES BUSINESS RISKS AND THAT THE SUCCESS OF THE VENTURE IS DEPENDENT, AMONG OTHER FACTORS, UPON THE BUSINESS ABILITIES AND EFFORTS OF DEVELOPER. FRANCHISOR MAKES NO REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, IN THIS DEVELOPMENT AGREEMENT OR OTHERWISE, AS TO THE POTENTIAL SUCCESS OF THE BUSINESS VENTURE CONTEMPLATED HEREBY.
14.5 No Guarantee of Success
DEVELOPER REPRESENTS AND ACKNOWLEDGES THAT IT HAS NOT RECEIVED OR RELIED ON ANY GUARANTEE, EXPRESS OR IMPLIED, AS TO THE REVENUES, PROFITS OR LIKELIHOOD OF SUCCESS OF ANY MONICAL'S RESTAURANT TO BE DEVELOPED PURSUANT TO THIS DEVELOPMENT AGREEMENT. DEVELOPER ACKNOWLEDGES AND AGREES THAT THERE HAVE BEEN NO REPRESENTATIONS BY FRANCHISOR OR ANYONE ON BEHALF OF FRANCHISOR THAT ARE NOT CONTAINED IN, OR ARE INCONSISTENT WITH, THE STATEMENTS MADE IN THE FRANCHISE DISCLOSURE DOCUMENT AND THIS DEVELOPMENT AGREEMENT.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
The 2025 Monicals Pizza FDD states that Monicals Pizza makes no representations or warranties, express or implied, in the Development Agreement or otherwise, as to the potential success of the business venture. This means Monicals Pizza does not guarantee the success of the franchisee's Monicals Pizza restaurant.
According to the FDD, the developer represents that they have conducted an independent investigation of the business contemplated by the Development Agreement and acknowledges that, like any other business, an investment in a Monicals Pizza restaurant involves business risks and that the success of the venture is dependent, among other factors, upon the business abilities and efforts of the developer. Therefore, the success of the Monicals Pizza business depends on the franchisee's own abilities and efforts.
Furthermore, the developer represents and acknowledges that it has not received or relied on any guarantee, express or implied, as to the revenues, profits, or likelihood of success of any Monicals Pizza restaurant to be developed pursuant to the Development Agreement. The developer acknowledges and agrees that there have been no representations by Monicals Pizza or anyone on behalf of Monicals Pizza that are not contained in, or are inconsistent with, the statements made in the Franchise Disclosure Document and this Development Agreement.