When is the transfer fee due 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 due at the time of transfer. This fee is payable if a franchisee transfers their Multi-Unit Development Agreement (MUDA) to a third party. The purpose of the fee is to cover Antioch Pizza Shop's costs and expenses incurred in connection with the transfer.
The transfer fee is calculated as 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. For example, if the initial franchise fee is $40,000, and the franchisee is transferring rights to develop two additional locations, the transfer fee would be 25% of $40,000 multiplied by 2, totaling $20,000.
This means that if a franchisee decides to sell their rights to develop additional Antioch Pizza Shop locations to someone else, they will need to pay this transfer fee at the time the transfer occurs. This is a fairly standard practice in franchising, as it allows the franchisor to recoup some of the costs associated with vetting and approving a new franchisee to take over the development rights. Prospective franchisees should consider this fee when evaluating the potential costs and benefits of a multi-unit development agreement.