What is the maximum Transfer Fee for a Monicals Pizza franchise?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Transfer Fee | Actual cost of legal fees and expenses and our salaries required for training new Franchisee up to a maximum total of $10,000 | At the time of transfer | Payable to us at the time of transfer. Does not apply to an assignment under Section 18.3 of the Franchise Agreement. |
Source: Item 6 — OTHER FEES (FDD pages 10–12)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, the transfer fee is capped at a maximum of $10,000. This fee covers the actual costs of legal fees and expenses, as well as the salaries required for training the new franchisee.
This fee is payable to Monicals Pizza at the time of the transfer. However, this transfer fee does not apply to assignments made under Section 18.3 of the Franchise Agreement, which likely covers specific situations such as transfers to existing owners or affiliated entities.
It is important for prospective franchisees to understand all conditions under which a transfer may occur and whether the transfer fee will apply. Understanding the circumstances that trigger this fee, and the potential for it to reach the $10,000 maximum, is crucial for financial planning.