Under what conditions can Monicals Pizza assume operation of the Franchised Restaurant following the death or incapacity of a franchisee?

According to Monicals Pizza's 2025 Franchise Disclosure Document, in the event of the death or incapacity of a franchisee or any holder of a legal or beneficial interest in the franchisee (if the franchisee is a business entity), Monicals Pizza has the right, but not the obligation, to assume operation of the franchised restaurant. This is contingent on Monicals Pizza's discretion and is enacted until the deceased or incapacitated owner's interest is transferred to a third party approved by Monicals Pizza.

During the period following the death or incapacity, the franchised restaurant must remain under the primary management of a Designated Manager who meets Monicals Pizza's management qualifications. This ensures continuity and adherence to brand standards during the transition period. The representative controlling the person's interest (administrator, personal representative, or trustee) has a reasonable time, not exceeding 180 days, to transfer the interest to a third party who is either another franchisee/owner or someone approved by Monicals Pizza. These transfers are subject to the standard conditions for assignments and transfers outlined in the franchise agreement, unless prohibited by state law where the individual resided.

If Monicals Pizza assumes operation of the restaurant, they may charge a management fee. The current fee is $500 per day, as stated in the Confidential Operations Manual. Additionally, Monicals Pizza is entitled to reimbursement for any expenses they incur that are not covered by the operating cash flow of the franchised restaurant. This provision ensures that Monicals Pizza is compensated for their management and any out-of-pocket expenses during the interim period, protecting their financial interests while maintaining the restaurant's operations.