Under what conditions can Monicals Pizza terminate the Development Agreement with cause?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in the Development Agreement | Summary |
|---|---|---|
| e. Termination by | Section 9.1 | Termination of any of your Franchise |
| franchisor without | Agreements, will constitute termination of your | |
| cause | Development Agreement for cause. | |
| f. Termination by franchisor with cause | Sections 8 and 9,1 | We may terminate the Development Agreement only if you default or if one of your Franchise Agreements is terminated. |
| g. "Cause" defined-curable defaults | Section 8.2 | You can avoid termination of the Development Agreement if you cure a default arising from your failure to comply with mandatory specifications in the Development Agreement within 30 days of receiving our notice of termination. |
| h. "Cause" defined-non curable defaults | Section 8.1 | We have the right to terminate the Development Agreement without giving you an opportunity to cure if you: transfer of control of Development Agreement or an interest in the your business entity in an unauthorized manner; made a material misrepresentation or omission in the application for the franchise; are convicted of or plead no contest to a felony or other crime or offense likely to affect the goodwill associated with the Marks; misuse or make unauthorized use of the Marks; terminate any Franchise Agreement with or without cause; fail to meet the timing requirements and deadlines contained in the development schedule; or fail to comply with any provision of the Development Agreement after notice of non-compliance. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 32–41)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, the company can terminate the Development Agreement with cause under specific circumstances. Monicals Pizza may terminate the Development Agreement if the franchisee defaults or if one of the Franchise Agreements is terminated. A default can be either curable or non-curable.
For curable defaults, a franchisee has 30 days from the notice of termination to correct the issue if the default arises from failure to comply with mandatory specifications in the Development Agreement. However, certain defaults are considered non-curable, allowing Monicals Pizza to terminate the Development Agreement without providing an opportunity to cure the default.
These non-curable defaults include unauthorized transfer of control of the Development Agreement or an interest in the franchisee's business entity, making a material misrepresentation or omission in the franchise application, conviction of a felony or other crime that could negatively impact the goodwill associated with the Monicals Pizza brand, misuse or unauthorized use of the brand's marks, termination of any Franchise Agreement (whether with or without cause), failure to meet the timing requirements and deadlines in the development schedule, or failure to comply with any provision of the Development Agreement after receiving a notice of non-compliance.