Under what conditions is the Monicals Pizza Franchisor obligated to proceed with the development agreement?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor shall not execute the Franchise Agreement if: (a) Developer is not in compliance with all, or is in default of any, of its obligations under this Development Agreement or any other agreement between Franchisor and Developer; or (b) in the case of each then existing Franchise Agreement, Developer, as Franchisee, is not in compliance with all, or is in default of any, of its obligations under any Franchise Agreement. Franchisor and Developer shall execute the Franchise Agreement for each additional Monical's Restaurant before the date stated in the Development Schedule that such Monical's Restaurant must be established and operating.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, the franchisor's obligation to execute the Franchise Agreement is contingent upon specific conditions related to the developer's compliance. Monicals Pizza will not execute the Franchise Agreement if the developer is not in compliance with all obligations or is in default of any obligations under the Development Agreement or any other agreement between the franchisor and the developer.
Furthermore, Monicals Pizza will not execute the Franchise Agreement if the developer, as a franchisee, is not in compliance with all obligations or is in default of any obligations under any existing Franchise Agreement. The Franchise Agreement for each additional Monicals Pizza Restaurant must be executed before the date stated in the Development Schedule for the restaurant to be established and operating.
In essence, Monicals Pizza ensures that the developer is in good standing and meets all requirements before proceeding with the execution of the Franchise Agreement for each additional restaurant. This protects Monicals Pizza from potential issues arising from non-compliant or defaulting developers and ensures the smooth operation and adherence to standards across all franchised locations.