Under what conditions can the Monicals Pizza Marketing Fund be terminated?

According to Monicals Pizza's 2025 Franchise Disclosure Document, the franchisor has the right to terminate the Marketing Fund at any time. However, the Marketing Fund cannot be terminated until all contributions have been spent on advertising and promotional purposes. If there are remaining funds, they must be returned to the franchisee and other franchisees on a pro rata basis. This pro rata distribution is based on the total Marketing Fund contributions made by each franchisee during the fiscal years in which the remaining contributions were collected.

This condition ensures that franchisees receive the benefit of their contributions to the Marketing Fund, even if the fund is terminated. It protects franchisees from a scenario where the franchisor could shut down the fund and retain unspent contributions. The pro rata distribution method ensures fairness in the return of funds, as those who contributed more receive a larger share of the remaining balance.

It is important for prospective Monicals Pizza franchisees to understand these terms, as they dictate how the Marketing Fund can be terminated and how any remaining funds will be distributed. Franchisees should also note that Monicals Pizza acknowledges that the Marketing Fund is not a trust and the franchisor assumes no fiduciary duty in administering the Marketing Fund.