If Monicals Pizza offers to sell a business it acquired to the franchisee, at what price must it be offered?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
2.6.3.1 offer to sell any such businesses to Franchisee or to any third party at the business's fair market value to be operated as a Monical's Restaurant; or
2.6.3.2 offer Franchisee the opportunity to operate such business(s) in some form of business entity or arrangement with Franchisor (or an Affiliate) under the businesses' existing trade name or a different trade name.
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, if Monicals Pizza acquires a business and offers to sell it to a franchisee, the offering price will be the business's fair market value. This ensures that the franchisee is paying a reasonable price for the business, based on its current market worth.
This fair market value condition protects the franchisee from being overcharged for an existing business. It also provides transparency in the transaction, as the price is determined by the market rather than being arbitrarily set by Monicals Pizza. The franchisee has the opportunity to evaluate the business's value and decide whether the investment is worthwhile.
Alternatively, Monicals Pizza can offer the franchisee the opportunity to operate the business in partnership with Monicals Pizza (or an affiliate). This could be under the existing trade name or a different trade name. This provides flexibility in how the business is managed and branded, potentially allowing the franchisee to leverage the existing reputation of the acquired business or rebrand it under the Monicals Pizza name.