Does Antioch Pizza Shop require approval for a transfer of the MUDA by the developer?
Antioch_Pizza_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in MUDA | Summary | |
|---|---|---|---|
| l. you | Our approval of transfer by | Section 8.2 | Only if consented to by us in writing in advance. We may withhold our consent in our sole discretion. |
| m. Conditions for our approval | Section 8.2 | Pay transfer fee. | |
| of transfer | |||
| p. | Your death or disability | Section 7.2(f) | Death of an owner is a default. |
| q. | Non-competition covenants during the term of the agreement | Section 6.4 | No involvement in a similar business or with a business granting franchises for similar businesses; subject to applicable state law. |
| r. | Non-competition covenants after the agreement is terminated or expires | Section 9.2 | For 2 years after termination or expiration of the MUDA you will not have any interest in a similar business with the Development Area or within 5 ½ miles of any existing Antioch Pizza Shop Business except under a Franchise Agreement with us. For 2 years, you will not divert customers to competitive businesses; subject to applicable state law. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 41–48)
What This Means (2025 FDD)
According to Antioch Pizza Shop's 2025 Franchise Disclosure Document, a transfer of any interest in the Multi-Unit Development Agreement (MUDA) or in the developer requires Antioch Pizza Shop's written consent in advance. Antioch Pizza Shop may withhold its consent at its sole discretion.
For a prospective Antioch Pizza Shop franchisee, this means that if you hold a MUDA and wish to transfer your rights or interest in it, you must obtain written approval from Antioch Pizza Shop. This requirement gives Antioch Pizza Shop significant control over who can become a developer within their system.
In addition to obtaining consent, Antioch Pizza Shop requires payment of a transfer fee as a condition for approval. This is a fairly standard practice in franchising, as it allows the franchisor to recoup costs associated with reviewing and approving the transfer. The FDD does not specify the amount of the transfer fee, so a prospective franchisee should inquire about the amount of the fee.
The MUDA also states that the death of an owner is considered a default. This clause protects Antioch Pizza Shop by ensuring the continuity and stability of its development agreements. Additionally, the MUDA includes non-competition covenants that restrict involvement in similar businesses during the agreement term and for a period of two years after termination or expiration, within the development area or near existing Antioch Pizza Shop locations.