What is the transfer fee required by Monicals Pizza for the sale or transfer of Development Rights?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
| between Monical Pizza Corporation and | This Addendum to the Area Development Agreement is agreed to this day of, 20, by and | |
|---|---|---|
| 1. | In recognition of the requirements of the Washington Franchise Investment Protection Act, | |
| is amended as follows: | Washington Rev. Code §§19.100.010 – 19.100.940, the Area Development Agreement for Monical Pizza Corporation | |
| | estimated or actual costs in effecting a transfer. | Transfer fees are collectable to the extent that they reflect the Franchisor's reasonable |
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, the transfer fees for development rights are addressed in an addendum for the state of Washington. The addendum states that transfer fees are collectable to the extent that they reflect the Franchisor's reasonable estimated or actual costs in effecting a transfer.
This implies that Monicals Pizza may charge a transfer fee for the sale or transfer of development rights, but the fee must be reasonable and tied to the actual costs the franchisor incurs during the transfer process. This could include legal fees, administrative costs, and other expenses associated with reviewing and approving the transfer.
For prospective Monicals Pizza franchisees looking to acquire or transfer development rights in Washington, it's important to understand what specific costs Monicals Pizza includes in their transfer fee calculation. Requesting a detailed breakdown of these costs can help ensure transparency and that the fees charged are indeed reasonable as defined by Washington law. Franchisees should also be aware of their rights under the Washington Franchise Investment Protection Act, which may provide additional protections regarding transfer fees and other aspects of the franchise agreement.