Does the definition of 'Transfer' by a Monicals Pizza franchisee include the transfer of an interest in the franchise?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | or Other Agreement | Summary |
|---|---|---|
| creating a health or safety hazard to customers, employees or the public; engage in any activity reserved to us; fail to comply with laws or regulations after notice of non-compliance; on 2 or more separate occasions, breach the Franchise Agreement or fail to comply with requirements, specifications, standards or procedures on 2 or more occasions within any 12 months; or default under any other agreement between you and us (or an affiliate) such that we (or the affiliate) have the right to terminate the agreement. | ||
| i. Franchisee's obligations on termination/non renewal | Section 17.1 | If the Franchise Agreement is terminated or not renewed, you must: stop operating the franchised restaurant; stop using any trade secret or other confidential information, the System and the Marks; if requested, assign your interest in the franchise location to us; cancel or assign to us any assumed names; promptly return to any third party any leased, loaned or other third-party equipment used in the operation of the franchised restaurant; pay all sums owed to us (or an affiliate) including damages and costs incurred in enforcing the Franchise Agreement; surrender access to and return all paper copies of the Confidential Operations Manual, trade secrets and all other confidential information; assign your telephone and facsimile numbers and on-line identifiers to us; comply with the covenants not to compete and any other surviving provisions of the Franchise Agreement. |
| j. Assignment of contract | Section 18.1 | There are no restrictions on our right to assign our |
| by franchisor | interest in the Franchise Agreement. | |
| k. "Transfer" by franchisee-definition | Section 18.2 | "Transfer" includes transfer of an interest in the franchise, the Franchise Agreement, the franchised restaurant's assets. |
| l. Franchisor's approval | Section 18.2 | You may not transfer your interest in any of the |
| of transfer by | items listed in (k) above without our prior written | |
| franchisee | consent. | |
| m. Conditions for franchisor's approval of transfer | Section 18.2 and Exhibit 6 | We will consent to a transfer if: we have not exercised our right of first refusal; all obligations owed to us are paid; you and the transferee have signed a General Release; the prospective transferee meets our business and financial standards; the transferee and all persons owning any interest in the transferee sign the then current franchise agreement (any franchisee holding a franchise agreement on |
| Provision | Section in Franchise or Other Agreement | Summary |
| ----------------------------------------------------------------------------------------------- | -------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 32–41)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, the definition of "Transfer" by a franchisee does include the transfer of an interest in the franchise. Specifically, the FDD states that "Transfer" includes the transfer of an interest in the franchise, the Franchise Agreement, and the franchised restaurant's assets.
This means that if a Monicals Pizza franchisee wants to sell any part of their ownership in the franchise, the Franchise Agreement itself, or the physical assets of the restaurant, it is considered a transfer under the terms of the agreement. As such, the franchisee would need to comply with the transfer provisions outlined in the Franchise Agreement.
Monicals Pizza requires prior written consent from them for any transfer of these items. The FDD outlines conditions for Monicals Pizza's approval of a transfer, including that they have not exercised their right of first refusal, all obligations owed to them are paid, and both the franchisee and the transferee have signed a General Release. The prospective transferee must also meet Monicals Pizza's business and financial standards and sign the current franchise agreement.