What is the financial amount of the transfer fee for Monicals Pizza Development Rights?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
| between Monical Pizza Corporation and | This Addendum to the Area Development Agreement is agreed to this day of, 20, by and | |
|---|---|---|
| 1. | In recognition of the requirements of the Washington Franchise Investment Protection Act, | |
| is amended as follows: | Washington Rev. Code §§19.100.010 – 19.100.940, the Area Development Agreement for Monical Pizza Corporation | |
| | Investment Protection Act will prevail. | Section 13.1 of the Area Development Agreement requires that the franchise be governed by Illinois Law; in the event of a conflict of laws, the provisions of the Washington Franchise |
| | Washington. | Sections 13.2 and 13.7 of the Area Development Agreement require litigation or arbitration to be conducted in Illinois, the requirement shall not limit any rights Developer may have under the Washington Franchise Investment Protection Act to bring suit in the State of |
| | not be enforceable. | Provisions as such as those that unreasonably restrict or limit the statute of limitations period for claims under the Act, rights or remedies under the Act such as a right to a jury trial may |
| | estimated or actual costs in effecting a transfer. | Transfer fees are collectable to the extent that they reflect the Franchisor's reasonable |
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document for Monicals Pizza does not specify a particular dollar amount for the transfer fee of development rights. However, an addendum to the Area Development Agreement addresses transfer fees within the context of the Washington Franchise Investment Protection Act.
Specifically, the addendum states that transfer fees are collectable only to the extent that they reflect the Franchisor's reasonable estimated or actual costs in effecting a transfer. This implies that Monicals Pizza can charge a transfer fee, but the amount must be tied to the actual costs they incur during the transfer process.
This is fairly standard in franchising, as many franchise agreements allow for transfer fees to cover the franchisor's administrative and legal costs associated with reviewing and approving a transfer application. A prospective Monicals Pizza franchisee should inquire with the franchisor about what specific costs are included in the transfer fee and how the fee is calculated to ensure transparency and reasonableness.
It is important to note that this information is part of an addendum related to the Washington Franchise Investment Protection Act, suggesting that the enforceability and specific terms regarding transfer fees may vary depending on the jurisdiction and applicable laws.