When is the transfer fee due for an Antioch Pizza Shop?
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 Antioch Pizza Shop's 2025 Franchise Disclosure Document, the transfer fee is due at the time of transfer. This fee is applicable if a franchisee transfers their Multi-Unit Development Agreement (MUDA) to a third party.
The transfer fee 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 intended to cover Antioch Pizza Shop's costs and expenses incurred in connection with the transfer.
For a prospective Antioch Pizza Shop franchisee, this means that if they decide to sell their rights to develop multiple units to another party, they will need to pay this transfer fee at the time the transaction occurs. It is important to factor this potential cost into any decision to transfer the MUDA, as it could significantly impact the financial outcome of such a transaction. Franchisees should carefully consider the implications of this fee and consult with Antioch Pizza Shop to understand the exact amount due at the time of a potential transfer.