When is the Transfer Fee due to Monicals Pizza?
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 due at the time of transfer. The fee covers the actual cost of legal fees and expenses, as well as the salaries required for training the new franchisee, up to a maximum of $10,000.
This means that if a franchisee decides to sell or transfer their Monicals Pizza franchise to a new owner, they will be responsible for paying this fee to Monicals Pizza at the time the transfer occurs. The fee is intended to compensate Monicals Pizza for the costs associated with the transfer process, including legal work and the training of the incoming franchisee.
It is important to note that this transfer fee does not apply to assignments under Section 18.3 of the Franchise Agreement, which may cover specific situations like transfers to family members or business partners under certain conditions. Prospective franchisees should carefully review Section 18.3 of the Franchise Agreement to understand the circumstances under which the transfer fee may be waived. Understanding the transfer fee and its conditions is crucial for financial planning and decision-making regarding the potential sale or transfer of a Monicals Pizza franchise.