Monicals Pizza
Monicals Pizza offers dine-in restaurants featuring pizza along with salads, sandwiches, and pasta. Known for its franchise opportunities in Illinois, it operates single or multiple locations through Area Development Agreements in the quick-service restaurant industry.
Monicals Pizza franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a single Monical's restaurant is estimated between $487,550 and $1,133,400 [p.1]. This includes $45,000 that must be paid to the franchisor or affiliate [p.1].
What is the initial franchise fee?
The initial franchise fee is $45,000 when you sign the Franchise Agreement, unless you are a Monical's Pizza employee, in which case the fee is reduced by $1,000 for every year of employment, with a minimum fee of $25,000 [p.9]. This fee is not financed by the company [p.13].
What are the ongoing royalty and advertising fees?
Ongoing royalty fees range from one percent to four percent of franchisees' sales, fluctuating based on actual restaurant sales. Advertising costs are expensed as incurred. [p.204, p.224]
How long is the initial franchise agreement, and can I renew it?
The initial franchise agreement is valid for five years [p.204]. You have the right to obtain a successor franchise at the expiration of the initial term and the first and second renewal terms, with each term also being five years long, provided you meet certain conditions [p.64].
Can I sell or transfer my franchise, and what does that require?
You can propose to sell or otherwise transfer the franchised restaurant, but you must first receive written permission from the franchisor [p.27]. If not selling to a family member, you also need to comply with the terms of Section 18.2, which includes giving the franchisor a right of first refusal [p.95]. This isn't specified in the excerpts for other types of transfers.
On what grounds can the franchisor terminate the agreement?
The franchisor can terminate the agreement if there is a default under any other agreement between Franchisor (or any Affiliate) and Franchisee [p.87], or if the Franchisee fails to comply with any lawful provision of the Franchise Agreement and does not cure such failure within 30 days after receiving written notice [p.246]. Additionally, the franchisor has the right to terminate the Marketing Fund at any time, but only after all contributions have been expended or returned pro rata [p.77]. This isn't specified in the excerpts for other grounds of termination.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD does not provide specific net worth or liquid capital requirements for franchisees to qualify. However, it does mention that the prospective transferee must meet the franchisor's management, business, and financial standards, as well as possess certain character and capabilities, including a good business reputation and credit rating [p.91, p.164].
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory. You will operate within an 'Area of Primary Responsibility' which is not protected from competition by other franchisees, outlets owned by the franchisor, or competitive brands controlled by the franchisor [p.27, p.62]. This area is defined based on various factors and you are required to focus your marketing efforts within this designated area [p.60].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial training program that includes topics such as food preparation methods, sales and marketing techniques, financial controls, and customer service. This training is conducted at the franchisor's headquarters or another designated location, and while there are no tuition fees, franchisees are responsible for covering travel costs, room and board expenses, and employees' salaries during this period [p.72]. Ongoing support includes access to the Monical's Pizza Confidential Operations Manual and other materials, as well as training at both the franchisor’s headquarters and the franchisee’s location [p.27].
How many franchised outlets are there, and how many have closed or been terminated?
As of the last fiscal year ending December 31, 2024, Monical Pizza Corporation has 26 franchised locations. The document indicates that some franchisees may have had their outlets terminated, cancelled, transferred, not renewed, or otherwise ceased to do business under a franchise agreement during the most recently completed fiscal year, but it does not specify the exact number of closed or terminated outlets [p.44].
Does the franchisor share any financial performance or earnings information?
The franchisor may provide actual records of an existing outlet that a franchisee is considering buying [p.41]. However, they are not authorized to make representations about future financial performance or past performance of company-owned or franchised outlets [p.41], unless the information comes from actual records of an existing outlet being purchased.
What am I restricted to selling, and where must I buy supplies?
You are not required to buy specific items from the franchisor or its affiliates but may need to purchase certain branded items from approved suppliers. Approximately 1% to 5% of your initial expenditures and about 25% to 30% of ongoing expenses will be for goods and services that must meet the franchisor's standards and specifications, which typically require approval from an approved supplier [p.18]. The franchise agreement may also prohibit you from operating a similar business during the term of the franchise and restrict your marketing activities on the internet or by cellphone except under a designated program or with prior written consent [p.23].