What must a Monicals Pizza franchisee provide to the Franchisor regarding contracts with the prospective transferee?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
chisor;
- 18.2.7 written certification that Franchisee has provided Franchisor with a complete copy of all contracts and agreements and related documentation between Franchisee and the prospective transferee relating to the intended sale or transfer of the Franchise;
- 18.2.8 Franchisee, or the transferee, has paid to Franchisor a transfer fee in the amount of TEN THOUSAND DOLLARS ($10,000.00);
- 18.2.9 the transferee, and all holders of a legal or beneficial interest in any entity that is to be a Franchise Operating Entity, have agreed to be personally bound jointly and severally by all provisions of this Agreement for the remainder of its term;
- 18.2.10 Franchisee has agreed to be bound to the obligations of the new franchise agreement and to guarantee the full performance thereof by the transferee, if required by Franchisor;
- 18.2.11 the transferee has obtained all necessary consents and approvals from third parties and all applicable federal, state and local laws, rules, ordinances and requirements applicable to the transfer have been complied with or satisfied;
- 18.2.12 the transferee has, and if the transferee is to be a Franchise Operating Entity, all of the holders of a legal and beneficial interest in the transferee have executed and delivered to Franchisor a Nondisclosure and Non-Competition Agreement;
- 18.2.13 the transferee agrees that its Designated Manager shall complete, to Franchisor's satisfaction, a training program in substance similar to the initial training described in Section 8.1 prior to assuming the management of the day-to-day operation of the Franchised Restaurant; and both Franchisee and the transferee have satisfied Franchisor that the Franchised Restaurant shall continue to be operated by a properly trained Designated Manager until such time as the transferee's Designated Manager shall have completed the necessary training; and
- 18.2.14 the transferee has obtained all necessary types of insurance as described in Secti
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, a franchisee looking to transfer their franchise must provide the franchisor with specific documentation related to the transfer. Specifically, the franchisee must furnish Monicals Pizza with a complete copy of all contracts, agreements, and related documentation between the franchisee and the prospective transferee concerning the intended sale or transfer of the franchise.
This requirement ensures that Monicals Pizza has full transparency into the terms of the transfer agreement. This allows them to assess whether the terms are acceptable and protect their interests. It also helps Monicals Pizza ensure that the prospective transferee is fully aware of the obligations and responsibilities they will be assuming as a franchisee.
In addition to providing all contracts and agreements, the franchisee must also obtain written certification confirming they have provided these documents to Monicals Pizza. This step likely serves as a formal confirmation that the franchisee has met their obligation and helps prevent any disputes regarding whether the required documentation was indeed furnished. Furthermore, the transferee must execute a General Release, releasing any and all claims against Monicals Pizza.