Are transfers following death or incapacity of a Monicals Pizza franchisee subject to the standard assignment and transfer conditions?
Monicals_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
apacity
18.6.1 Upon the death or Incapacity of Franchise (if Franchisee is an individual) or any holder of a legal or beneficial interest in Franchisee (if Franchisee is a business entity), the appropriate representative controlling such person (whether administrator, personal representative or trustee) shall, within a reasonable time not exceeding one hundred eighty (180) days following such event, transfer such individual's interest in the Franchised Restaurant or in the Franchise Operating Entity to a third party who is either (a) another Franchisee and/or owner of the Franchise Operating Entity or (b) approved by Franchisor. Such transfers, including transfers by will or inheritance, shall be subject to the conditions for assignments and transfers contained in this Agreement, unless prohibited by the laws of the state where such individual resided, provided that the foregoing provision regarding governing law shall be applicable only for this Section 18.6. During such one hundred eighty (180) day period, the Franchised Restaurant must remain at all times under the primary management of a Designated Manager who otherwise meets Franchisor's management qualifications.
18.6.2 Following such a death or Incapacity of such person as described in this Section 18.6, if necessary in Franchisor's discretion, Franchisor shall have the right, but not the obligation, to assume operation of the Franchised Restaurant until the deceased or incapacitated owner's interest is transferred to a third party approved by Franchisor. Franchisor may charge a management fee as stated in the Confidential Operations Manual from time to time, currently equal to FIVE HUNDRED DOLLARS ($500.00) per day, and Franchisor shall further be entitled to reimbursement of any expenses Franchisor incurs that are not paid out of the operating cash flow of the Franchised Res
Source: Item 23 — RECEIPTS (FDD pages 46–257)
What This Means (2025 FDD)
According to Monicals Pizza's 2025 Franchise Disclosure Document, transfers of a franchise due to the death or incapacity of the franchisee are generally subject to the standard assignment and transfer conditions outlined in the franchise agreement. Specifically, the representative of the deceased or incapacitated franchisee must transfer the interest in the Monicals Pizza restaurant within 180 days to either another franchisee/owner or a third party approved by Monicals Pizza. These transfers, including those by will or inheritance, are subject to the standard transfer conditions. However, this is unless prohibited by the laws of the state where the individual resided.
During the 180-day period following the death or incapacity, the Monicals Pizza restaurant must remain under the primary management of a Designated Manager who meets Monicals Pizza's management qualifications. This ensures the continued operation of the restaurant during the transition period.
If Monicals Pizza deems it necessary, they have the right, but not the obligation, to assume operation of the Monicals Pizza restaurant until the transfer is completed. In such cases, Monicals Pizza may charge a management fee, which is currently $500.00 per day, as well as reimbursement for any expenses incurred that are not covered by the restaurant's operating cash flow. This provision protects Monicals Pizza's interests and ensures the brand's standards are maintained during the transfer process.