Can Antioch Pizza Shop withhold consent for a transfer of the MUDA?
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. |
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, Antioch Pizza Shop has the right to deny a transfer of the Multi-Unit Development Agreement (MUDA). Specifically, Section 8.2 of the MUDA states that any transfer by the franchisee requires Antioch Pizza Shop's advance written consent, which Antioch Pizza Shop may withhold at its sole discretion.
This provision gives Antioch Pizza Shop significant control over who becomes a multi-unit developer within their franchise system. For a prospective franchisee, this means that if they wish to sell or transfer their development rights, Antioch Pizza Shop has the final say. They are not obligated to approve the transfer, even if the franchisee finds a suitable buyer.
In addition to obtaining consent, Section 8.2 also states that the franchisee must pay a transfer fee to gain approval from Antioch Pizza Shop. This is a fairly standard practice in franchising, as it allows the franchisor to recoup costs associated with reviewing and approving the transfer. Prospective franchisees should consider this lack of control and potential transfer fee when evaluating the MUDA.