Following the death or incapacity of a Monicals Pizza franchisee, who can the interest in the Franchised Restaurant or Franchise Operating Entity be transferred to?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
apacity
18.6.1 Upon the death or Incapacity of Franchise (if Franchisee is an individual) or any holder of a legal or beneficial interest in Franchisee (if Franchisee is a business entity), the appropriate representative controlling such person (whether administrator, personal representative or trustee) shall, within a reasonable time not exceeding one hundred eighty (180) days following such event, transfer such individual's interest in the Franchised Restaurant or in the Franchise Operating Entity to a third party who is either (a) another Franchisee and/or owner of the Franchise Operating Entity or (b) approved by Franchisor. Such transfers, including transfers by will or inheritance, shall be subject to the conditions for assignments and transfers contained in this Agreement, unless prohibited by the laws of the state where such individual resided, provided that the foregoing provision regarding governing law shall be applicable only for this Section 18.6. During such one hundred eighty (180) day period, the Franchised Restaurant must remain at all times under the primary management of a Designated Manager who otherwise meets Franchisor's management qualifications.
18.6.2 Following such a death or Incapacity of such person as described in this Section 18.6, if necessary in Franchisor's discretion, Franchisor shall have the right, but not the obligation, to assume operation of the Franchised Restaurant until the deceased or incapacitated owner's interest is transferred to a third party approved by Franchisor. Franchisor may charge a management fee as stated in the Confidential Operations Manual from time to time, currently equal to FIVE HUNDRED DOLLARS ($500.00) per day, and Franchisor shall further be entitled to reimbursement of any expenses Franchisor incurs that are not paid out of the operating cash flow of the Franchised Res
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, in the event of the death or incapacity of a franchisee who is an individual, or any holder of legal or beneficial interest in a franchisee that is a business entity, their representative has 180 days to transfer the interest in the Franchised Restaurant or Franchise Operating Entity.
The interest can be transferred to either another existing Monicals Pizza franchisee or owner of the Franchise Operating Entity, or to a third party approved by Monicals Pizza. These transfers, including those by will or inheritance, are subject to the standard conditions for assignments and transfers outlined in the Franchise Agreement, unless state law prohibits such conditions.
During the 180-day period following the death or incapacity, the Monicals Pizza restaurant must be managed by a Designated Manager who meets the franchisor's qualifications. If necessary, Monicals Pizza has the right, but not the obligation, to assume operation of the restaurant until the interest is transferred. If Monicals Pizza assumes operation, they may charge a management fee, currently $500 per day, as well as reimbursement for any expenses incurred that are not covered by the restaurant's operating cash flow.