Does the Monicals Pizza Unlimited Guaranty specify any geographic limitations on the Guarantor's obligations?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
If Guarantor consists of more than one person and/or entity, (a) this Guaranty Agreement shall be binding on all of them jointly and severally, and (b) notice to or from any of them will constitute notice to or from each of them.
Any notice or other communication to Franchisor may be addressed to Monical Pizza Corporation, 530 N. Bradley Blvd., Bradley, Illinois, 60915, Attention: President, or such other address as may be designated by Franchisor by registered or certified mail, return receipt requested, and the time of rendition of such notice or other communication shall be when it is deposited in an official United States Mail receptacle, postage prepaid.
This Guaranty Agreement, which is to be governed by and construed in accordance with the laws of the State of Illinois, shall also bind Guarantor's legal or personal representatives, heirs, successors and assigns (as the case may be) and inure to the benefit of Franchisor and its Affiliates and their successors and assigns and any other person or entity at any time having the rights of Franchisor or any Affiliate under the Franchise Agreement and each Related Agreement.
Guarantor will forthwith pay to Franchisor and/or an Affiliate, as applicable, all attorney's fees and disbursements incurred by Franchisor and/or an Affiliate, as applicable, in connection with any breach or default by Franchisee under the Franchise Agreement or any Related Agreement and/or the enforcement of this Guaranty Agreement, in each instance whether or not suit is brought (and if suit is brought, through appeals and collection efforts).
Any sums not paid to Franchisor or any Affiliate when due hereunder will bear interest at the rate of 18% per annum, from the due date until full payment is received by Franchisor or such Affiliate.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
The 2025 Monicals Pizza FDD does not specify any geographic limitations regarding the Guarantor's obligations under the Unlimited Guaranty and Assumption of Obligations. However, the FDD states that the Guaranty Agreement is governed by and construed in accordance with the laws of the State of Illinois. This means that any legal disputes related to the guaranty will be subject to Illinois law, regardless of where the franchisee or guarantor is located.
The Unlimited Guaranty and Assumption of Obligations is attached as Exhibit 3 to the Franchise Agreement, and requires holders of a legal or beneficial interest of 5% or greater in the franchisee to assume and discharge all of the franchisee's obligations under the agreement. This includes being personally liable for all obligations. The guarantor is also responsible for covering Monicals Pizza's attorney's fees and disbursements if the franchisee breaches the Franchise Agreement or any related agreement, or if Monicals Pizza has to enforce the Guaranty Agreement.
Furthermore, the FDD specifies that any notices to Monicals Pizza can be sent to their corporate address in Bradley, Illinois. The agreement binds the guarantor's legal representatives, heirs, successors, and assigns, and benefits Monicals Pizza and its affiliates, successors, and assigns. This ensures that the obligations under the guaranty extend to those who inherit or acquire the guarantor's interests. The absence of explicit geographic limitations suggests that the obligations of the guarantor are not restricted to a specific region, but are applicable wherever the franchisee's operations or the enforcement of the agreement may occur.