Under what conditions can Monicals Pizza terminate the System-wide marketing fund?

According to the 2025 Monicals Pizza Franchise Disclosure Document, while the company intends for the marketing fund to be perpetual, Monicals Pizza retains the right to terminate it if necessary. However, Monicals Pizza is obligated to use all contributions and earnings within the fund for advertising and promotional purposes before termination. If there are remaining funds, they must be returned to the franchisees on a pro rata basis, meaning each franchisee receives a portion proportional to their contribution.

This condition protects franchisees by ensuring that the money they contribute to the marketing fund is used appropriately for its intended purpose. It also prevents Monicals Pizza from simply dissolving the fund and keeping the remaining money. The pro rata return provision ensures fairness in the event of termination.

It's important for prospective franchisees to understand that while Monicals Pizza intends for the fund to continue indefinitely, unforeseen circumstances could lead to its termination. Therefore, franchisees should factor this possibility into their financial planning and be aware of their rights regarding the return of unused funds. This is a fairly standard practice in franchising, as franchisors need to maintain some flexibility in managing marketing funds while also assuring franchisees that their contributions will be used responsibly.