How is the transfer fee calculated for an Antioch Pizza Shop franchise?
Antioch_Pizza_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Indemnification | Will vary under circumstances | As incurred | You have to reimburse us if we are held liable for claims arising from your operation of the development business or incur costs in defending them. |
| Transfer Fee | Calculated as the total of 25% of the initial franchise fee currently being charged for a Dine-In or Take-Out Delivery Restaurant for each additional franchise to be developed under the Development Schedule as of the date of transfer. | At the time of transfer. | Payable if you transfer the MUDA to a third party to cover our costs and expenses incurred in connection with the transfer. |
| Costs and Attorney’s Fees | Will vary under circumstances. | As incurred | You must reimburse us for costs and attorneys’ fees for enforcement of covenants, for obtaining specific performance of injunctive relief, and if we are successful in an action to enforce the MUDA. |
Source: Item 7 — Estimated Initial Investment (FDD pages 17–24)
What This Means (2025 FDD)
According to the 2025 FDD, the transfer fee for an Antioch Pizza Shop franchise is calculated as 25% of the initial franchise fee currently charged for a Dine-In or Take-Out Delivery Restaurant for each additional franchise to be developed under the Development Schedule as of the date of transfer. This fee is payable at the time of transfer.
In simpler terms, if a franchisee wishes to transfer their Multi-Unit Development Agreement (MUDA) to a third party, Antioch Pizza Shop charges a fee to cover their costs and expenses associated with the transfer. This fee is a percentage of the initial franchise fee that Antioch Pizza Shop is charging at the time of the transfer for each additional franchise that was supposed to be developed under the original agreement's development schedule.
For example, if the initial franchise fee for a Dine-In restaurant is $40,000 at the time of transfer, and the franchisee was scheduled to develop two more units, the transfer fee would be 25% of $40,000 multiplied by 2, equaling $20,000. This fee structure incentivizes franchisees to fulfill their development agreements and compensates Antioch Pizza Shop for the administrative and legal work involved in approving a transfer to a new franchisee.