How is the Antioch Pizza Shop transfer fee calculated when transferring the MUDA?
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 6 — Other Fees (FDD pages 13–17)
What This Means (2025 FDD)
According to Antioch Pizza Shop's 2025 Franchise Disclosure Document, the transfer fee for a Multi-Unit Development Agreement (MUDA) 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 the transfer.
In practical terms, if a franchisee with a MUDA wants to transfer their development rights to another party, Antioch Pizza Shop will charge a fee based on the number of remaining restaurants to be developed under the original agreement. This fee is a percentage of the current initial franchise fee, not the fee that was in place when the MUDA was originally signed. This means the transfer fee could fluctuate depending on any changes to the initial franchise fee over time.
This transfer fee is intended to cover Antioch Pizza Shop's costs and expenses associated with the transfer process. It is important for prospective franchisees to understand this fee, as it could represent a significant expense if they decide to sell their development rights. Franchisees should consider the potential transfer fee when negotiating the terms of their MUDA and when making decisions about the pace of their development schedule.
It is also important to note that the transfer fee for a standard franchise agreement is different from the MUDA transfer fee. The standard franchise transfer fee is 75% of the then applicable initial franchise fee for buyers who are currently not one of Antioch Pizza Shop's franchisees and 25% of the then applicable initial franchise fee for buyers who are currently one of Antioch Pizza Shop's franchisees. This highlights the importance of carefully reviewing the specific terms related to transfer fees in both the Franchise Agreement and the Multi-Unit Development Agreement.