Beggars_Pizza 2025 Franchise FAQ - FDD Ninja

Question 1

What actions does the auditor take when performing an audit of Beggars Pizza in accordance with generally accepted auditing standards?

Accepted Answer

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards, we:

- Exercise professional judgment and maintain professional skepticism throughout the audit.
- Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Beggars Pizza Franchise, LLC's internal control. Accordingly, no such opinion is expressed.
- Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
- Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about Beggars Pizza Franchise, LLC's ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.

Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)

Question 2

For a Beggars Pizza franchise, what is the customer responsible for regarding their website and the SpeedLine service?

Accepted Answer

- a. Customer is responsible for providing and maintaining a website for its business on which a link to the Service will be placed that Users will click to go to the Service and place online orders for Customer's food. Customer is responsible for all equipment, telecommunications, and services necessary to make (and maintain) its website.

Source: Item 23 — RECEIPT (FDD pages 39–192)

Question 3

What sections of the Beggars Pizza Franchise Agreement are deleted in their entirety?

Accepted Answer

|                                                                                    |                                                                                                 | This BEGGARS PIZZA FRANCHISE, LLC FRANCHISE AGREEMENT RENEWAL                                                                                                                                                                                      |
|------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  |  | ADDENDUM (the "Addendum") is made and entered into on, 20, by and between Beggars Pizza Franchise, LLC, formerly known as Beggars Pizza Franchise Corporation, an Illinois corporation located at 12949 South California Avenue, Blue Island, |
| Illinois 60406 ("Franchisor"); and |  | , a |
| located at | WITNESSETH: | ("Franchisee"). WHEREAS, Franchisee currently operates a Beggars Pizza® restaurant located at: |
| Franchisee dated | , 20 | (the "Restaurant") pursuant to a prior franchise agreement entered into between Franchisor and (the "Prior Agreement"); |
| Franchise, LLC Franchise Agreement dated Agreement; and |  | WHEREAS, Franchisor and Franchisee have entered into that certain Beggars Pizza , 20 (the "Franchise Agreement") for the purpose of renewing Franchisee's rights granted under the Prior |
| Agreement as set forth herein. |  | WHEREAS, Franchisor and Franchisee desire to amend the terms of the Franchise |
| hereby acknowledged, the parties, intending to be legally bound, agree as follows: |  | NOW, THEREFORE, in consideration of the terms and conditions hereinafter set forth, and other good and valuable consideration, the receipt, adequacy and sufficiency of which are |
| 1. |  | The fifth WHEREAS clause on Page 1 of the Franchise Agreement is hereby |
| deleted in its entirety and replaced with the following language: |  |  |
| restaurant; |  | WHEREAS, Franchisee has operated a Beggars Pizza® restaurant under Franchisor's System and Proprietary Marks under a franchise agreement, and wishes to enter into a renewal franchise agreement with Franchisor to continue to operate such |
| 2. |  | Section 1.2 of the Franchise Agreement is hereby deleted in its entirety and |
| replaced with the following: |  |  |
| 1.2 not relocate the | Restaurant without Franchisor may withhold approval of relocation in its sole discretion. | Approved Location. Franchisee will operate the Restaurant only at the location identified in Exhibit A (the "Approved Location"). Franchisee will Franchisor's prior written approval. |
- 3. Section 2.2 of the Franchise Agreement is hereby deleted in its entirety. Franchisee agrees and acknowledges that Franchisee has no right to further renew the Franchise Agreement after the term of the Franchise Agreement.
- 4.

Source: Item 22 — CONTRACTS (FDD page 39)

Question 4

What is the total potential length of a Beggars Pizza franchise if the renewal option is exercised?

Accepted Answer

| Provision                                  | Section in Franchise Agreement | Summary                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|--------------------------------------------|--------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| a. Length of the term of the franchise     | 2.1.                                 | Ten years.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| b. Renewal or extension of the term        | 2.2.                                 | You have the right to renew for one additional ten-year term if certain conditions are met.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| c. Requirements to renew or extend         | 2.2.                                 | Conditions include (a) timely delivery of written notice of your election to renew, (b) completion of all maintenance, refurbishing, renovating, and remodeling of the Restaurant and all of the equipment, fixtures, furnishings, and interior and exterior signage as we require so that the Restaurant reflects the then-current image of a Beggars Pizza® Restaurant, (c) your current compliance with your Franchise Agreement and substantial compliance with your Franchise Agreement during the term to date, (d) your satisfaction of all monetary obligations owed to us, our affiliates, and trade creditors, (e) presenting satisfactory evidence of your ability to remain in possession of the Restaurant premises for the duration of the renewal term, (f) your execution of our then-current form of Franchise Agreement which may have materially different terms and conditions than your initial Franchise Agreement, (g) your and your owners' execution of a general release, (h) your compliance with our then-current qualification and training requirements, and (i) your payment of a renewal fee.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 31–35)

Question 5

What is the difference in initial franchise fee between a Beggars Pizza restaurant with 150 or fewer seats and one with more than 150 seats?

Accepted Answer

IAL FEES**

You must pay us an initial franchise fee of \$25,000 for a Beggars Pizza® Restaurant with 150 or fewer seats and \$40,000 for a Beggars Pizza® Restaurant with more than 150 seats. The entire initial franchise fee is due when you sign your Franchise Agreement. If you open a second Beggars Pizza® Restaurant with an identical ownership group with each owner having identical ownership interests, we will reduce the initial franchise fee by 50%. The initial franchise fee is fully earned upon receipt and not r

Source: Item 5 — INITIAL FEES (FDD pages 8–9)

Question 6

What is the difference in initial franchise fee for a Beggars Pizza restaurant with 150 or fewer seats versus one with more than 150 seats, as detailed in Item 5, and how does this relate to the estimated initial investment in Item 7?

Accepted Answer

IAL FEES**

You must pay us an initial franchise fee of \$25,000 for a Beggars Pizza® Restaurant with 150 or fewer seats and \$40,000 for a Beggars Pizza® Restaurant with more than 150 seats. The entire initial franchise fee is due when you sign your Franchise Agreement. If you open a second Beggars Pizza® Restaurant with an identical ownership group with each owner having identical ownership interests, we will reduce the initial franchise fee by 50%. The initial franchise fee is fully earned upon receipt and not r

Question 7

What are all the fees a Beggars Pizza franchisee might incur, combining the initial fees in Item 5 and the other fees listed in Item 6?

Accepted Answer

IAL FEES**

You must pay us an initial franchise fee of \$25,000 for a Beggars Pizza® Restaurant with 150 or fewer seats and \$40,000 for a Beggars Pizza® Restaurant with more than 150 seats. The entire initial franchise fee is due when you sign your Franchise Agreement. If you open a second Beggars Pizza® Restaurant with an identical ownership group with each owner having identical ownership interests, we will reduce the initial franchise fee by 50%. The initial franchise fee is fully earned upon receipt and not refundable.

If you are signing your Franchise Agreement to renew your existing franchise, you must sign the Renewal Addendum attached to this disclosure document as Exhibit J and pay a renewal fee as prescribed in your expiring Franchise Agreement when you sign your new Franchise Agreement in lieu of the initial franchise fee described above.

Question 8

How does the initial franchise fee for a Beggars Pizza restaurant (Item 5) compare to the total estimated initial investment (Item 7), and what percentage does the fee represent?

Accepted Answer

fewer seats:

| Expense | Amount |  | Method of Payment | When Due | To Whom Payment is Made |
|---|---|---|---|---|---|
| Initial Franchise Fee | $25,000 | $25,000 | Lump sum | When you sign your Franchise Agreement | Us |
| Travel and Living Expenses During Training (Note 1) | $1,000 | $5,000 | As incurred | During training | Airlines, hotels, restaurants, etc. |
| Rent or Real Estate (not | $15,000 | $22,000 | As arranged | Before opening | Lessor |
| including the purchase of |  |  |  |  |  |
| property)(Note 2) |  |  |  |  |  |
| Improvements (build-out) | $150,000 | $350,000 | As arranged | Before opening | Contractor |
| (Note 3) |  |  |  |  |  |
| Furniture and Fixtures (Note 4) | $5,000 | $50,000 | As arranged | Before opening or as arranged with vendors | Vendors |
| Equipment (Note 4) | $75,000 | $150,000 | As arranged | Before opening or as arranged with vendors | Vendors |
| Insurance (Note 5) | $5,000 | $15,000 | As arranged | Prior to opening | Insurance companies |
| Signage | $5,000 | $25,000 | As arranged | Before opening or as arranged with vendors | Vendors |
| Miscellaneous | $2,000 | $5,000 | As incurred | Before opening | Suppliers, utility |
| Opening Costs |  |  |  |  | companies, etc. |
| Opening Inventory | $5,000 | $7,500 | As arranged | Before opening | Us, our affiliates, or |
| (Note 6) |  |  |  |  | approved suppliers |
| Grand Opening | $10,000 | $10,000 | As arranged | Within 30 days | Distribution services |
| Advertising |  |  |  | after opening | and media providers |
| Computer Equipment and | $35,000 | $50,000 | As arranged | Before opening | Vendors |
| Software (POS system) |  |  |  | or as arranged |  |
| (Note 7) |  |  |  | with vendors |  |
| Additional Funds | $10,000 | $25,000 | As incurred | As incurred | Employees, suppliers, |
| (Note 8) |  |  |  |  | utility companies, etc. |
| TOTALS | $343,000 to $739,500 |  |  |  |  |For a Beggars Pizza® Restaurant with more than 150 seats:

| Expense | Amount |  | Method of Payment | When Due | To Whom Payment is Made |
|---|---|---|---|---|---|
| Initial Franchise Fee | $40,000 | $40,000 | Lump sum | When you sign your Franchise Agreement | Us |
| Travel and Living Expenses During Training (Note 1) | $1,000 | $5,000 | As incurred | During training | Airlines, hotels, restaurants, etc. |
| Rent or Real Estate (not | $32,000 | $47,000 | As arranged | Before opening | Lessor |
| including the purchase of |  |  |  |  |  |
| property) (Note 2) |  |  |  |  |  |
| Improvements (build-out) | $250,000 | $400,000 | As arranged | Before opening | Contractor |
| (Note 3) |  |  |  |  |  |
| Furniture and Fixtures (Note 4) | $75,000 | $200,000 | As arranged | Before opening or as arranged with vendors | Vendors |
| Equipment (Note 4) | $125,000 | $175,000 | As arranged | Before opening or as arranged with vendors | Vendors |
| Insurance (Note 5) | $14,000 | $50,000 | As arranged | Prior to opening | Insurance companies |
| Signage | $5,000 | $25,000 | As arranged | Before opening or as arranged with vendors | Vendors |
| Miscellaneous | $2,000 | $5,000 | As incurred | Before opening | Suppliers, utility |
| Opening Costs |  |  |  |  | companies, etc. |
| Opening Inventory | $5,000 | $8,000 | As arranged | Before opening | Us, our affiliates, or |
| (Note 6) |  |  |  |  | approved suppliers |
| Grand Opening | $10,000 | $10,000 | As arranged | Within 30 days | Distribution services |
| Advertising |  |  |  | after opening | and media providers |
| Computer Equipment and | $50,000 | $75,000 | As arranged | Before opening | Vendors |
| Software (POS system) |  |  |  | or as arranged |  |
| (Note 7) |  |  |  | with vendors |  |
| Additional Funds | $20,000 | $40,000 | As incurred | As incurred | Employees, suppliers, |
| (Note 8) |  |  |  |  | utility companies, etc. |
| TOTALS | $629,000 to $1,080,000 |  |  |  |  |Except as otherwise described in the notes below, the tables above provide an estimate of the initial investment for a new Beggars Pizza® Restaurant. All costs listed in the table are estimates. Actual costs will vary for each franchise location. All fees and payments described in

this Item 7 are non-refundable unless otherwise stated or permitted by the payee. We do not offer financing for any part of the initial investment.

Note 1. The figures in the charts represent estimated pre-opening salaries of one employee during our three-week management training program. See Item 11 of this disclosure document for more information about our management training program. We will cover the cost of instructors and instructional materials, but you must pay your cost of travel, meals, lodging, and salaries.

Note 2.

Question 9

What is the relationship between the initial franchise fee for a Beggars Pizza restaurant as described in Item 5 and the estimated total initial investment for a restaurant with 150 or fewer seats as detailed in Item 7?

Accepted Answer

| Expense | Amount |  | Method of Payment | When Due | To Whom Payment is Made |
|---|---|---|---|---|---|
| Initial Franchise Fee | $25,000 | $25,000 | Lump sum | When you sign your Franchise Agreement | Us |
| Travel and Living Expenses During Training (Note 1) | $1,000 | $5,000 | As incurred | During training | Airlines, hotels, restaurants, etc. |
| Rent or Real Estate (not | $15,000 | $22,000 | As arranged | Before opening | Lessor |
| including the purchase of |  |  |  |  |  |
| property)(Note 2) |  |  |  |  |  |
| Improvements (build-out) | $150,000 | $350,000 | As arranged | Before opening | Contractor |
| (Note 3) |  |  |  |  |  |
| Furniture and Fixtures (Note 4) | $5,000 | $50,000 | As arranged | Before opening or as arranged with vendors | Vendors |
| Equipment (Note 4) | $75,000 | $150,000 | As arranged | Before opening or as arranged with vendors | Vendors |
| Insurance (Note 5) | $5,000 | $15,000 | As arranged | Prior to opening | Insurance companies |
| Signage | $5,000 | $25,000 | As arranged | Before opening or as arranged with vendors | Vendors |
| Miscellaneous | $2,000 | $5,000 | As incurred | Before opening | Suppliers, utility |
| Opening Costs |  |  |  |  | companies, etc. |
| Opening Inventory | $5,000 | $7,500 | As arranged | Before opening | Us, our affiliates, or |
| (Note 6) |  |  |  |  | approved suppliers |
| Grand Opening | $10,000 | $10,000 | As arranged | Within 30 days | Distribution services |
| Advertising |  |  |  | after opening | and media providers |
| Computer Equipment and | $35,000 | $50,000 | As arranged | Before opening | Vendors |
| Software (POS system) |  |  |  | or as arranged |  |
| (Note 7) |  |  |  | with vendors |  |
| Additional Funds | $10,000 | $25,000 | As incurred | As incurred | Employees, suppliers, |
| (Note 8) |  |  |  |  | utility companies, etc. |
| TOTALS | $343,000 to $739,500 |  |  |  |  |

Question 10

What is the total estimated initial investment for a Beggars Pizza restaurant with 150 or fewer seats (Item 7), and how much of that is the initial franchise fee (Item 5)?

Accepted Answer

fewer seats:

| Expense | Amount |  | Method of Payment | When Due | To Whom Payment is Made |
|---|---|---|---|---|---|
| Initial Franchise Fee | $25,000 | $25,000 | Lump sum | When you sign your Franchise Agreement | Us |
| Travel and Living Expenses During Training (Note 1) | $1,000 | $5,000 | As incurred | During training | Airlines, hotels, restaurants, etc. |
| Rent or Real Estate (not | $15,000 | $22,000 | As arranged | Before opening | Lessor |
| including the purchase of |  |  |  |  |  |
| property)(Note 2) |  |  |  |  |  |
| Improvements (build-out) | $150,000 | $350,000 | As arranged | Before opening | Contractor |
| (Note 3) |  |  |  |  |  |
| Furniture and Fixtures (Note 4) | $5,000 | $50,000 | As arranged | Before opening or as arranged with vendors | Vendors |
| Equipment (Note 4) | $75,000 | $150,000 | As arranged | Before opening or as arranged with vendors | Vendors |
| Insurance (Note 5) | $5,000 | $15,000 | As arranged | Prior to opening | Insurance companies |
| Signage | $5,000 | $25,000 | As arranged | Before opening or as arranged with vendors | Vendors |
| Miscellaneous | $2,000 | $5,000 | As incurred | Before opening | Suppliers, utility |
| Opening Costs |  |  |  |  | companies, etc. |
| Opening Inventory | $5,000 | $7,500 | As arranged | Before opening | Us, our affiliates, or |
| (Note 6) |  |  |  |  | approved suppliers |
| Grand Opening | $10,000 | $10,000 | As arranged | Within 30 days | Distribution services |
| Advertising |  |  |  | after opening | and media providers |
| Computer Equipment and | $35,000 | $50,000 | As arranged | Before opening | Vendors |
| Software (POS system) |  |  |  | or as arranged |  |
| (Note 7) |  |  |  | with vendors |  |
| Additional Funds | $10,000 | $25,000 | As incurred | As incurred | Employees, suppliers, |
| (Note 8) |  |  |  |  | utility companies, etc. |
| TOTALS | $343,000 to $739,500 |  |  |  |  |For a Beggars Pizza® Restaurant with more than 150 seats:

| Expense | Amount |  | Method of Payment | When Due | To Whom Payment is Made |
|---|---|---|---|---|---|
| Initial Franchise Fee | $40,000 | $40,000 | Lump sum | When you sign your Franchise Agreement | Us |
| Travel and Living Expenses During Training (Note 1) | $1,000 | $5,000 | As incurred | During training | Airlines, hotels, restaurants, etc.

Question 11

If Beggars Pizza requests, is the franchisee obligated to purchase or lease the Computer System and Required Software?

Accepted Answer

- 8.4.3 At Franchisor's request, Franchisee must purchase or lease, and thereafter maintain, the Computer System and, if applicable, the Required Software. Franchisor may remotely retrieve and use such data and information from Franchisee's Computer System or Required Software that Franchisor deems necessary or desirable at any time. Franchisee expressly agrees to strictly comply with Franchisor's standards and specifications for all items associated with Franchisee's Computer System and any Required Software in accordance with Franchisor's standards and specifications. Franchisee must keep the Computer System in good maintenance and repair and install such additions, changes, modifications, substitutions, and/or replacements to

the Computer System or Required Software as Franchisor directs from time to time in writing. Franchisee's compliance with this Section 8.4 will be at Franchisee's sole cost and expense.

Source: Item 22 — CONTRACTS (FDD page 39)

Question 12

Under what circumstances is a Beggars Pizza franchisee required to indemnify the franchisor?

Accepted Answer

Guarantors must defend, indemnify, and hold Franchisor and Begcom harmless against any losses, damages, liabilities, costs, and expenses including, without limitation, reasonable attorneys' fees, reasonable costs of investigation, court costs, and arbitration fees and expenses resulting from, consisting of, or arising out of or in connection with any failure by Franchisee to perform any obligation of Franchisee under the Agreements, any amendments thereto, or any other agreements executed by Franchisee in connection with the Agreements.

Source: Item 22 — CONTRACTS (FDD page 39)

Question 13

Who bears the cost of defense if a Beggars Pizza franchisee does not use the Proprietary Marks in accordance with the Franchise Agreement?

Accepted Answer

We will defend you against any third-party claim, suit, or demand arising out of your use of the Proprietary Marks in strict compliance with the Manuals. If we determine that you have used the Proprietary Marks in accordance with your Franchise Agreement in our sole discretion, we will bear the cost of your defense including the cost of any judgment or settlement; however, if we determine in our sole discretion that you have not used the Proprietary Marks in accordance with your Franchise Agreement, the cost of your defense will be your responsibility including the cost of any judgment or settlement. In any

litigation relating to your use of the Proprietary Marks, you must sign all documents and do such acts as we may require to carry out your defense or prosecution, including becoming a nominal party to any legal action. We will reimburse you for your out-of-pocket expenses for these acts except to the extent that the litigation is the result of your use of the Proprietary Marks in a manner inconsistent with the terms of your Franchise Agreement.

Source: Item 13 — TRADEMARKS (FDD pages 28–30)

Question 14

Who bears the cost of defense if the Beggars Pizza franchisee has used the Proprietary Marks in accordance with the Agreement?

Accepted Answer

Franchisor will defend Franchisee against any third-party claim, suit, or demand arising out of Franchisee's use of the Proprietary Marks.

If Franchisor, in its sole discretion, determines that Franchisee has used the Proprietary Marks in accordance with the Agreement, the cost of such defense, including the cost of any judgment or settlement, will be borne by Franchisor.

If Franchisor, in its sole discretion, determines that Franchisee has not used the Proprietary Marks in accordance with the Agreement, the cost of such defense, including the cost of any judgment or settlement, will be borne by Franchisee.

If any litigation relating to Franchisee's use of the Proprietary Marks arises, Franchisee must execute any documents and perform such acts as may be necessary to carry out such defense or prosecution in Franchisor's sole opinion including, without limitation, becoming a nominal party to any legal action.

Except to the extent that such litigation is the result of Franchisee's use of the Proprietary Marks in a manner inconsistent with the terms of the Agreement, Franchisor will reimburse Franchisee for its out-of-pocket costs in doing such acts; and

Source: Item 22 — CONTRACTS (FDD page 39)

Question 15

Who bears the cost of defense if the Beggars Pizza franchisee has not used the Proprietary Marks in accordance with the Agreement?

Accepted Answer

Franchisor will defend Franchisee against any third-party claim, suit, or demand arising out of Franchisee's use of the Proprietary Marks.

If Franchisor, in its sole discretion, determines that Franchisee has used the Proprietary Marks in accordance with the Agreement, the cost of such defense, including the cost of any judgment or settlement, will be borne by Franchisor.

If Franchisor, in its sole discretion, determines that Franchisee has not used the Proprietary Marks in accordance with the Agreement, the cost of such defense, including the cost of any judgment or settlement, will be borne by Franchisee.

If any litigation relating to Franchisee's use of the Proprietary Marks arises, Franchisee must execute any documents and perform such acts as may be necessary to carry out such defense or prosecution in Franchisor's sole opinion including, without limitation, becoming a nominal party to any legal action.

Except to the extent that such litigation is the result of Franchisee's use of the Proprietary Marks in a manner inconsistent with the terms of the Agreement, Franchisor will reimburse Franchisee for its out-of-pocket costs in doing such acts; and

Source: Item 22 — CONTRACTS (FDD page 39)

Question 16

Can Beggars Pizza charge a fee for advice and assistance provided to the franchisee?

Accepted Answer

- 3.4 Additional Assistance. On Franchisee's reasonable request, and in Franchisor's sole discretion, Franchisor will make available to Franchisee advice and assistance on the proper implementation of the System and operation of the Restaurant. Franchisor may charge a reasonable fee for such advice and assistance.

Source: Item 22 — CONTRACTS (FDD page 39)

Question 17

What is the condition for an affiliate to not pay an initial franchise fee to operate a Beggars Pizza Restaurant?

Accepted Answer

If we permit an affiliate to operate a Beggars Pizza® Restaurant, the affiliate will not pay an initial franchise fee.

Source: Item 5 — INITIAL FEES (FDD pages 8–9)

Question 18

What is the condition for the customer to pay travel time for SpeedLine's personnel at SpeedLine's then-current standard charge rates, and SpeedLine's out-of-pocket expenses for travel, food and lodging of SpeedLine's personnel for Beggars Pizza franchisees?

Accepted Answer

Travel: If SpeedLine agrees to have any of its personnel travel to the Customer's location to provide support products and services, the Customer agrees to pay travel time for SpeedLine's personnel at SpeedLine's then-current standard charge rates, and SpeedLine's out-of-pocket expenses for travel, food and lodging of SpeedLine's personnel.

Source: Item 23 — RECEIPT (FDD pages 39–192)

Question 19

For Beggars Pizza, what is the condition for the customer to perform its own implementation and training?

Accepted Answer

Where the Customer will perform its own implementation and training, the Customer's personnel shall first have completed SpeedLine's training to SpeedLine's satisfaction, and the Customer must use such personnel as trained by SpeedLine to perform the implementation and training in accordance with SpeedLine's specifications and standards and with the approval of SpeedLine in writing in advance.

If SpeedLine is required to perform additional training for new or replacement personnel of the Customer, SpeedLine reserves the right to charge for the same at its then-current standard charge rate plus expenses.

Source: Item 23 — RECEIPT (FDD pages 39–192)

Question 20

What is the condition for Beggars Pizza to make additional copies of the Installed Software beyond the backup copy?

Accepted Answer

COPIES: The Customer may make one (1) copy of the Installed Software for backup purposes. No other copies shall be made in any form or medium without prior written consent from the President of SpeedLine or other authorized personnel at SpeedLine designated by the President as having such authority ("authorized personnel"). You may not copy the Documentation accompanying the Software in any form or medium.

Source: Item 23 — RECEIPT (FDD pages 39–192)

Question 21

For Beggars Pizza, what is the condition for SpeedLine to approve the customer as a supplier?

Accepted Answer

APPROVED SUPPLIER: If the Licensor of the Customer requires that the Customer must purchase, receive or acquire equipment and software that meets the Licensor's required specifications and standards and which is acquired from an approved supplier, the Customer is responsible for ensuring that the equipment and software described in the Quote meet the required specifications and standards, and for having SpeedLine approved as a supplier of the equipment and software described in the Quote.

Source: Item 23 — RECEIPT (FDD pages 39–192)

Question 22

For Beggars Pizza, what is the condition for SpeedLine to charge for additional training?

Accepted Answer

If SpeedLine is required to perform additional training for new or replacement personnel of the Customer, SpeedLine reserves the right to charge for the same at its then-current standard charge rate plus expenses.

Source: Item 23 — RECEIPT (FDD pages 39–192)

Question 23

What is the condition for SpeedLine to provide the services of one or more technicians with the required special knowledge of the Software products to provide the support products and services for Beggars Pizza franchisees?

Accepted Answer

Special Services and Cross Border Services: The Software products are manufactured in Canada. The Software products require support services and, where applicable, information management services at locations, to be provided only by specially trained technicians. In connection with the Software products, including the Software products which are supplied by SpeedLine from Canada and delivered to the Customer outside Canada, incidental to the payment by the Customer to SpeedLine for the Software license, SpeedLine will provide the services of one or more technicians with the required special knowledge of the Software products to provide the support products and services as called for under and for the term of this Agreement, and within the cost set forth in this Agreement, and any amendment hereof.

Travel: If SpeedLine agrees to have any of its personnel travel to the Customer's location to provide support products and services, the Customer agrees to pay travel time for SpeedLine's personnel at SpeedLine's then-current standard charge rates, and SpeedLine's out-of-pocket expenses for travel, food and lodging of SpeedLine's personnel.

Source: Item 23 — RECEIPT (FDD pages 39–192)

Question 24

What is the condition for SpeedLine to provide the support products and services as called for under and for the term of this Agreement, and within the cost set forth in this Agreement, and any amendment hereof for Beggars Pizza franchisees?

Accepted Answer

Special Services and Cross Border Services: The Software products are manufactured in Canada. The Software products require support services and, where applicable, information management services at locations, to be provided only by specially trained technicians. In connection with the Software products, including the Software products which are supplied by SpeedLine from Canada and delivered to the Customer outside Canada, incidental to the payment by the Customer to SpeedLine for the Software license, SpeedLine will provide the services of one or more technicians with the required special knowledge of the Software products to provide the support products and services as called for under and for the term of this Agreement, and within the cost set forth in this Agreement, and any amendment hereof.

Travel: If SpeedLine agrees to have any of its personnel travel to the Customer's location to provide support products and services, the Customer agrees to pay travel time for SpeedLine's personnel at SpeedLine's then-current standard charge rates, and SpeedLine's out-of-pocket expenses for travel, food and lodging of SpeedLine's personnel.

Source: Item 23 — RECEIPT (FDD pages 39–192)

Question 25

What is the condition for the SpeedLine Solutions Inc. Support Services Agreement to include initial support for the operating system for Beggars Pizza franchisees?

Accepted Answer

This Agreement includes initial support for the operating system, such as implementation of patches required to run the Software on the Customer's computers, from implementation of the Software (but only where implementation is done by SpeedLine) until it is used in the Customer's business, and only if it directly relates to the operation of the Software. Computer hardware repair and services are not covered under this Agreement but would be covered by the manufacturer's hardware warranty where applicable.

Source: Item 23 — RECEIPT (FDD pages 39–192)

Question 26

What is the condition under which a Beggars Pizza franchisee can establish a separate website?

Accepted Answer

However, Franchisor may require that Franchisee have one or more references or webpages as designated and approved in advance by Franchisor within Franchisor's principal Website (currently, www.beggarspizza.com) (the "Franchisor's Website").

The term "Website" means an interactive electronic document contained in a network of computers linked by communications software, commonly referred to as the Internet including, without limitation, any account, page, or other presence on a social or business networking media site, such as Meta, Twitter, LinkedIn, and on-line blogs and forums (collectively, "Networking Media Sites").

Franchisor may require that Franchisee not have any Website other than the webpages made available on Franchisor's Website.

However, if Franchisor approves a separate Website for Franchisee (which Franchisor is not obligated to approve and which approval, if granted, may later be revoked by Franchisor), then each of the following provisions will apply:

- 8.8.1 Franchisee specifically acknowledges and agrees that any Website owned, established, or maintained by or for the benefit of Franchisee will be deemed "advertising" under the Agreement and will be subject to, among other things, Franchisor's prior review and approval;

- 8.8.2 Before establishing any Website, Franchisee must submit to Franchisor, for Franchisor's prior written approval, a sample of the proposed Website domain name, format, visible content (including, without limitation, proposed screen shots), and non-visible content (including, without limitation, metatags) in the form and manner Franchisor may reasonably require;

- 8.8.3 If approved, Franchisee will not materially modify such Website without Franchisor's prior written approval as to such proposed modification;

- 8.8.4 Franchisee must comply with the standards and specifications for Websites that Franchisor may periodically prescribe in the Manual or otherwise in writing;

- 8.8.5 If required by Franchisor, Franchisee must establish such hyperlinks to Franchisor's Website and other Websites as Franchisor may request in writing;

Source: Item 22 — CONTRACTS (FDD page 39)

Question 27

What conditions must Beggars Pizza meet to use the SpeedLine Software on a specific number of terminals, as per the SpeedLine Solutions Inc. Software License Agreement?

Accepted Answer

LOCATION AND NUMBER OF TERMINALS: The on-premises implemented software may be used only at the Customer's location as specified in the Quote, and only on the number of terminals which is equal to the number of SpeedLine Solutions software user licenses received by the Customer or, in the case of certain of the software programs, only on one (1) of the Customer's terminals, as specified in the Quote.

No change of the location or increase to the number of terminals may be made without the prior written consent of SpeedLine.

- 10.

IMPLEMENTATION CRITERIA: The Customer is responsible to meet SpeedLine's implementation criteria for site preparation, facilities and specifications as set forth in the SpeedLine Solutions System Implementation Requirements provided to the Customer, prior to implementation of the equipment and software, and to maintain such criteria thereafter.

- 11.

APPROVED SUPPLIER: If the Licensor of the Customer requires that the Customer must purchase, receive or acquire equipment and software that meets the Licensor's required specifications and standards and which is acquired from an approved supplier, the Customer is responsible for ensuring that the equipment and software described in the Quote meet the required specifications and standards, and for having SpeedLine approved as a supplier of the equipment and software described in the Quote.

- 12.

PAYMENT IN FULL: The Customer acknowledges and agrees that the total owing as described in the Quote shall be paid in full prior to SpeedLine providing the Customer with the access code to activate the software for use by the Customer.

Source: Item 23 — RECEIPT (FDD pages 39–192)

Question 28

What conditions must Beggars Pizza meet to use the SpeedLine Software for the term specified in the Quote, as per the SpeedLine Solutions Inc. Software License Agreement?

Accepted Answer

CONSIDERATION - FIXED PREPAID LICENSE TERM: The Customer may also receive the License for certain Installed Software products, and the Installed Software copy provided, for a fixed prepaid license term, by fully paying for the License for the prepaid license term for those products by an initial deposit and payment in full of the balance due, as invoiced by SpeedLine to the Customer, on or before implementation of those Installed Software products. The fixed prepaid license term may then be extended or renewed on the same terms and

Agreement Last Updated: January 30, 2024

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conditions as provided in this Agreement for further fixed prepaid license terms, by fully paying for the License and Installed Software copy for the extended or renewed prepaid license term by payment in full of the amount due for such extended or renewed prepaid license term, as invoiced by SpeedLine to the Customer (including and as it may be adjusted by SpeedLine for the extended or renewed prepaid license term), on or before the expiry date of the then current fixed prepaid license term or extended or renewed prepaid license term.

CONSIDERATION - SUBSCRIPTION LICENSE TERM: The Customer may also receive (a) the License for certain Installed Software products, and the Installed Software copy provided, and for Online Services, and (b) Software updates and support products and services under the Support Services Agreement as specified in the Quote, in the case of subsections (a) and (b) for a subscription license term, by paying one or more monthly recurring subscription fee(s) as invoiced by SpeedLine to the Customer on a monthly basis and adjusted by SpeedLine from time to time effective after the end of the initial term and as of the beginning of any renewal term. Subscription fees payments, plus applicable taxes, will be invoiced on the 25th (or the closest preceding business day) of each month (including for any partial periods in the month), except for the first month when they will be invoiced with

the Quote. If the Customer adds any additional subscription Licenses or products and services during the initial or any renewal term, (i) the term of such additional subscription Licenses or products and services will be the same as the initial subscription term or renewal term then in effect; and

Source: Item 23 — RECEIPT (FDD pages 39–192)

Question 29

Can Beggars Pizza conduct inspections of the franchisee's Beggars Pizza restaurant operation?

Accepted Answer

#### **7. DUTIES OF FRANCHISEE**

- 7.1 Operating Standards. Franchisee understands and acknowledges that every detail of the Restaurant is important to Franchisee, Franchisor and other franchisees in order to develop and maintain high operating standards, to increase the demand for the products sold by all Beggars Pizza® restaurants operating under the System, and to protect Franchisor's reputation and goodwill.
- 7.2 Shop Operations. Franchisee must use the Premises solely for the operation of the business franchised hereunder; must keep the Restaurant open and in normal operation for such minimum hours and days as Franchisor may specify; must refrain from using or permitting the use of the Premises for any other purpose or activity at any time without first obtaining the written consent of Franchisor; and must operate the Restaurant in strict conformity with such methods, standards, and specifications as Franchisor may from time to time prescribe in the Manual or

otherwise in writing. Franchisee must refrain from deviating from such standards, specifications, and procedures without Franchisor's prior written consent.

- 7.3 Trade Secret Items, Commissary Items, and Other Items.

Franchisor has developed certain proprietary, confidential and trade secret recipes that are part of the System including, without limitation, pizza dough, spaghetti and pizza sauces, sausage, and secret spice blends, and may develop additional such recipes and products from time to time.

Franchisor sells such products through Begcom or other designated suppliers.

Franchisee acknowledges and agrees that such items are essential to the operation of the Restaurant.

Begcom is the designated supplier of certain additional food items and supplies (including, without limitation, cheeses, sausages, and paper products), some of which bear the Proprietary Marks and some of which do not bear the Proprietary Marks, and Franchisor may from time to time specify in the Manual or otherwise in writing certain other parties that will be designated suppliers for specified products, materials, supplies, paper goods, fixtures, furnishings and equipment used or sold at the Restaurant.

Franchisee acknowledges and agrees that it must purchase such items from Begcom or such other designated suppliers in order to assure the uniform quality and image associated with the Restaurant.

- 7.4 Adherence to Standards and Specifications.

Source: Item 22 — CONTRACTS (FDD page 39)

Question 30

For Beggars Pizza, what is the consequence if the customer does not meet SpeedLine's implementation criteria?

Accepted Answer

SpeedLine is not responsible for problems or incompatibilities:

- (e) arising where the Customer fails to meet and maintain SpeedLine's implementation criteria for the equipment and Software.

Source: Item 23 — RECEIPT (FDD pages 39–192)

Question 31

What is the consequence if a Beggars Pizza franchisee fails to provide signed equipment leasing documentation?

Accepted Answer

The implementation date and the training dates and schedule will be notified to the Customer, and where applicable, upon SpeedLine receiving the required deposits and/or the required equipment leasing company documentation.

Source: Item 23 — RECEIPT (FDD pages 39–192)

Question 32

What is the consequence of withdrawing consent to withdrawals for my Beggars Pizza franchise?

Accepted Answer

Upon execution of the Agreement, Franchisee must execute Exhibit B attached hereto and furnish to Supplier the bank and account number, a voided check from such bank account, and written authorization for Supplier to withdraw funds from the bank account via EFT without further consent or authorization for all payments payable by Franchisee to Supplier hereunder.

Franchisee must execute any documents as may be necessary to effectuate and maintain the EFT arrangement as required by Supplier.

Franchisee must pay all costs associated with any such transfer.

If Franchisee changes banks or accounts for the bank account required by this Section

- 3(d), Franchisee must, prior to such change, provide such information concerning the new account and an authorization to make withdrawals therefrom.

Franchisee's failure to provide such information concerning the bank account required by this Section 3(d) or any new account, or Franchisee's withdrawal of consent to withdrawals for whatever reason and by whatever method, will be a breach of the Agreement.

- (e) Suspension of Product Shipments.

If Franchisee fails to make any payment in full to Supplier when due, Supplier may, without limitation: (a) suspend or refuse shipment to Franchisee of additional Products until such payment has been made, and (b) require payment for any future shipments of Products to be made on a cash-on-delivery basis.

Source: Item 23 — RECEIPT (FDD pages 39–192)

Question 33

Does the cost of Product Inspection and Testing for Beggars Pizza depend on the supplier being evaluated?

Accepted Answer

| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Manual Replacement Fee | $250 | When billed. | Payable if you lose or misplace any part of the Manuals and we replace it. |
| Transfer Fee | $7,500 | Before transfer. | Payable if you transfer or assign your franchise. |
| Product Inspection and Testing | Cost of inspection or testing. We estimate that our costs will be between $500 and $2,000. | When billed. | Payable if you ask us to evaluate or approve a proposed supplier. See Item 8 for information about supplier restrictions and our supplier approval process. |
| Software Support and Upgrades | Approximately $175/month subject to increases. | As incurred. | You must pay Speedline Solutions, Inc. (“Speedline”) for license fees, ongoing software support, and upgrades. |
| Legal Fees and Indemnification | Varies according to cost or loss incurred. | On demand. | You indemnify us and our affiliates from liability for any claim based on or arising from your operation of the Restaurant. |
| Additional Assistance | Then-current fee. We currently charge $75/hour or $550/day. | When billed. | At your request, we may provide additional advice and assistance to you in our discretion. |

Source: Item 6 — OTHER FEES (FDD pages 9–11)

Question 34

What is the deadline for commencing operation of the Beggars Pizza Restaurant if the franchisee has executed the Site Selection Addendum?

Accepted Answer

If, at the time of execution of the Agreement, a location for the Restaurant has not been obtained by Franchisee and approved by Franchisor, Franchisee must lease or acquire a location within ninety (90) days after the date of the Agreement, subject to Franchisor's approval, as provided for in the Site Selection Addendum attached hereto as Exhibit B.

Source: Item 22 — CONTRACTS (FDD page 39)

Question 35

Can the delivery day for products to my Beggars Pizza franchise be changed?

Accepted Answer

Supplier, in its reasonable discretion, will specify a weekly delivery day on which Products purchased by Franchisee will be delivered to the Beggars Restaurant (the "Delivery Day").

Any Products ordered by Franchisee less than two (2) days prior to a particular Delivery Day will be delivered on the following regularly scheduled Delivery Day.

Products will be delivered at Supplier's expense.

Supplier will bear the risk of loss until the Products are delivered to Franchisee.

Source: Item 23 — RECEIPT (FDD pages 39–192)

Question 36

What is the dependency between a default under the Franchise Agreement and Beggars Pizza Franchise, LLC's right to take possession of the premises?

Accepted Answer

Upon a default by Assignor under the Lease or under the Beggars Pizza Franchise, LLC Franchise Agreement for a Beggars Pizza® restaurant between Assignee and Assignor (the "Franchise Agreement"), or if a default by Assignor under any document or instrument securing the Franchise Agreement occurs, Assignee will have the right to take possession of the premises demised by the Lease, expel Assignor therefrom, and in such event, Assignor will have no further right, title, or interest in the Lease.

Source: Item 23 — RECEIPT (FDD pages 39–192)

Question 37

What is the dependency for a reduced initial franchise fee for a second Beggars Pizza location?

Accepted Answer

If you open a second Beggars Pizza® Restaurant with an identical ownership group with each owner having identical ownership interests, we will reduce the initial franchise fee by 50%.

Source: Item 5 — INITIAL FEES (FDD pages 8–9)

Question 38

For Beggars Pizza, what is the dependency for SpeedLine to provide the access code to activate the software?

Accepted Answer

SOFTWARE KEY; ACCESS CODES: SpeedLine will provide the Customer with a software key and assign an access code to activate the Software for use by the Customer. Where a License is for an unlimited term, the access code will not expire or else will be extended by SpeedLine as necessary. Where a License is for a fixed prepaid license term or an extended or renewed prepaid license term, the access code will be for the prepaid license term only. Where a License is for a subscription license term, the access code will be for so long as the subscription license term continues. The Customer acknowledges that the Software will become inoperable upon the expiry or earlier withdrawal of the access code in accordance with the terms of this Agreement. Certain Installed Software may incorporate automatic shutdown features that will render the Software inoperable and Online Services will become inaccessible if the Customer is no longer authorized to use them under this Agreement.

Source: Item 23 — RECEIPT (FDD pages 39–192)

Question 39

For Beggars Pizza, what is the dependency for SpeedLine to suspend the customer's use of the service?

Accepted Answer

SUSPENSION OF ONLINE SERVICES: In addition to other applicable remedies, SpeedLine may suspend Customer's access to the Online Services (or any part thereof) upon 5 business days' email notice if Customer's account becomes delinquent (falls into arrears) or Customer materially breaches this Agreement and such breach has not been cured within such 5 days' period, in lieu of termination of this Agreement (but without limiting SpeedLine's right to terminate this Agreement at any time after such suspension).

Source: Item 23 — RECEIPT (FDD pages 39–192)

Question 40

For Beggars Pizza, what is the effect of PCI SSC acceptance on the responsibility for product warranties?

Accepted Answer

When granted, PCI SSC acceptance is provided to signify the Assessor's determination that the product has demonstrated achievement of certain security and operational characteristics important to the security of payment card data, but such acceptance does not under any circumstances include or imply any endorsement or warranty by PCI SSC regarding the product vendor, the product, or the functionality, quality, or performance of the product or any other product or service. PCI SSC does not warrant any products or services provided by third parties. PCI SSC acceptance does not, under any circumstances, include or imply any product warranties from PCI SSC, including, without limitation, any implied warranties of merchantability, fitness for purpose or noninfringement, all of which are expressly disclaimed by PCI SSC. To the extent any rights or remedies regarding products or services that have received acceptance from PCI SSC are provided, those rights and remedies shall be provided by the party providing such products or services, and not by PCI SSC or any of its payment brand members.

Source: Item 23 — RECEIPT (FDD pages 39–192)

Question 41

To what extent is the Beggars Pizza franchisee not required to indemnify the franchisor if the claims are caused by the franchisor's negligence?

Accepted Answer

- 20.3 Indemnification.

Franchisee must indemnify and hold harmless Franchisor and its affiliates, and their respective officers, directors and employees against any claims, losses, costs, expenses, liabilities, and damages arising directly or indirectly from, as a result of, or in connection with Franchisee's operation of the Restaurant, the business conducted under the Agreement, Franchisee's failure to comply with applicable regional, national, international, and local laws and regulations as described herein, or Franchisee's breach of the Agreement including, without limitation, those alleged to be caused by Franchisor's negligence unless (and then only to the extent

that) the claims, obligations, and damages are determined to be caused solely by Franchisor's gross negligence or willful misconduct according to a final, unappealable ruling issued by a court with competent jurisdiction and the costs including, without limitation, reasonable attorneys' fees of defending against them. If Franchisor incurs any costs or expenses including, without limitation, legal fees, travel expenses, and other charges in connection with any proceeding involving Franchisee in which Franchisor is not a party, Franchisee must reimburse Franchisor for all such costs and expenses promptly upon presentation of invoices. Franchisee's indemnification and hold harmless obligations under this Section 20 will survive the termination or expiration of the Agreement. Nothing herein will preclude Franchisor from choosing its own legal counsel to represent it in any lawsuit, arbitration, or other dispute resolution.

Source: Item 22 — CONTRACTS (FDD page 39)

Question 42

Does the Beggars Pizza FDD specify the conditions required to renew the franchise agreement?

Accepted Answer

| Provision                                  | Section in Franchise Agreement | Summary                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|--------------------------------------------|--------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| a. Length of the term of the franchise     | 2.1.                                 | Ten years.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| b. Renewal or extension of the term        | 2.2.                                 | You have the right to renew for one additional ten-year term if certain conditions are met.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| c. Requirements to renew or extend         | 2.2.                                 | Conditions include (a) timely delivery of written notice of your election to renew, (b) completion of all maintenance, refurbishing, renovating, and remodeling of the Restaurant and all of the equipment, fixtures, furnishings, and interior and exterior signage as we require so that the Restaurant reflects the then-current image of a Beggars Pizza® Restaurant, (c) your current compliance with your Franchise Agreement and substantial compliance with your Franchise Agreement during the term to date, (d) your satisfaction of all monetary obligations owed to us, our affiliates, and trade creditors, (e) presenting satisfactory evidence of your ability to remain in possession of the Restaurant premises for the duration of the renewal term, (f) your execution of our then-current form of Franchise Agreement which may have materially different terms and conditions than your initial Franchise Agreement, (g) your and your owners' execution of a general release, (h) your compliance with our then-current qualification and training requirements, and (i) your payment of a renewal fee.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 31–35)

Question 43

Does the Beggars Pizza franchise agreement outline the process for requesting a renewal?

Accepted Answer

| Provision                                  | Section in Franchise Agreement | Summary                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|--------------------------------------------|--------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| a. Length of the term of the franchise     | 2.1.                                 | Ten years.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| b. Renewal or extension of the term        | 2.2.                                 | You have the right to renew for one additional ten-year term if certain conditions are met.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| c. Requirements to renew or extend         | 2.2.                                 | Conditions include (a) timely delivery of written notice of your election to renew, (b) completion of all maintenance, refurbishing, renovating, and remodeling of the Restaurant and all of the equipment, fixtures, furnishings, and interior and exterior signage as we require so that the Restaurant reflects the then-current image of a Beggars Pizza® Restaurant, (c) your current compliance with your Franchise Agreement and substantial compliance with your Franchise Agreement during the term to date, (d) your satisfaction of all monetary obligations owed to us, our affiliates, and trade creditors, (e) presenting satisfactory evidence of your ability to remain in possession of the Restaurant premises for the duration of the renewal term, (f) your execution of our then-current form of Franchise Agreement which may have materially different terms and conditions than your initial Franchise Agreement, (g) your and your owners' execution of a general release, (h) your compliance with our then-current qualification and training requirements, and (i) your payment of a renewal fee. |

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 31–35)

Question 44

Does the Beggars Pizza franchise agreement require the franchisee to be in good standing to be eligible for renewal?

Accepted Answer

| Provision                                  | Section in Franchise Agreement | Summary                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|--------------------------------------------|--------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| b. Renewal or extension of the term        | 2.2.                                 | You have the right to renew for one additional ten-year term if certain conditions are met.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| c. Requirements to renew or extend         | 2.2.                                 | Conditions include (a) timely delivery of written notice of your election to renew, (b) completion of all maintenance, refurbishing, renovating, and remodeling of the Restaurant and all of the equipment, fixtures, furnishings, and interior and exterior signage as we require so that the Restaurant reflects the then-current image of a Beggars Pizza® Restaurant, (c) your current compliance with your Franchise Agreement and substantial compliance with your Franchise Agreement during the term to date, (d) your satisfaction of all monetary obligations owed to us, our affiliates, and trade creditors, (e) presenting satisfactory evidence of your ability to remain in possession of the Restaurant premises for the duration of the renewal term, (f) your execution of our then-current form of Franchise Agreement which may have materially different terms and conditions than your initial Franchise Agreement, (g) your and your owners' execution of a general release, (h) your compliance with our then-current qualification and training requirements, and (i) your payment of a renewal fee.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 31–35)

Question 45

Does the Beggars Pizza franchise agreement specify a deadline for requesting a renewal?

Accepted Answer

| Provision                                  | Section in Franchise Agreement |
|--------------------------------------------|--------------------------------------|
| b. Renewal or extension of the term        | 2.2.                                 | You have the right to renew for one additional ten-year term if certain conditions are met.
| c. Requirements to renew or extend         | 2.2.                                 | Conditions include (a) timely delivery of written notice of your election to renew, (b) completion of all maintenance, refurbishing, renovating, and remodeling of the Restaurant and all of the equipment, fixtures, furnishings, and interior and exterior signage as we require so that the Restaurant reflects the then-current image of a Beggars Pizza® Restaurant, (c) your current compliance with your Franchise Agreement and substantial compliance with your Franchise Agreement during the term to date, (d) your satisfaction of all monetary obligations owed to us, our affiliates, and trade creditors, (e) presenting satisfactory evidence of your ability to remain in possession of the Restaurant premises for the duration of the renewal term, (f) your execution of our then-current form of Franchise Agreement which may have materially different terms and conditions than your initial Franchise Agreement, (g) your and your owners' execution of a general release, (h) your compliance with our then-current qualification and training requirements, and (i) your payment of a renewal fee.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 31–35)

Question 46

Does the Beggars Pizza franchise agreement specify any financial obligations that must be met to qualify for renewal?

Accepted Answer

| Provision                                  | Section in Franchise Agreement | Summary                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|--------------------------------------------|--------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| b. Renewal or extension of the term        | 2.2.                                 | You have the right to renew for one additional ten-year term if certain conditions are met.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| c. Requirements to renew or extend         | 2.2.                                 | Conditions include (a) timely delivery of written notice of your election to renew, (b) completion of all maintenance, refurbishing, renovating, and remodeling of the Restaurant and all of the equipment, fixtures, furnishings, and interior and exterior signage as we require so that the Restaurant reflects the then-current image of a Beggars Pizza® Restaurant, (c) your current compliance with your Franchise Agreement and substantial compliance with your Franchise Agreement during the term to date, (d) your satisfaction of all monetary obligations owed to us, our affiliates, and trade creditors, (e) presenting satisfactory evidence of your ability to remain in possession of the Restaurant premises for the duration of the renewal term, (f) your execution of our then-current form of Franchise Agreement which may have materially different terms and conditions than your initial Franchise Agreement, (g) your and your owners' execution of a general release, (h) your compliance with our then-current qualification and training requirements, and (i) your payment of a renewal fee.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 31–35)

Question 47

Does the Beggars Pizza franchise agreement specify if the renewal is contingent upon the franchisee completing any additional training?

Accepted Answer

| Provision                                  | Section in Franchise Agreement | Summary                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|--------------------------------------------|--------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| b. Renewal or extension of the term        | 2.2.                                 | You have the right to renew for one additional ten-year term if certain conditions are met.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| c. Requirements to renew or extend         | 2.2.                                 | Conditions include (a) timely delivery of written notice of your election to renew, (b) completion of all maintenance, refurbishing, renovating, and remodeling of the Restaurant and all of the equipment, fixtures, furnishings, and interior and exterior signage as we require so that the Restaurant reflects the then-current image of a Beggars Pizza® Restaurant, (c) your current compliance with your Franchise Agreement and substantial compliance with your Franchise Agreement during the term to date, (d) your satisfaction of all monetary obligations owed to us, our affiliates, and trade creditors, (e) presenting satisfactory evidence of your ability to remain in possession of the Restaurant premises for the duration of the renewal term, (f) your execution of our then-current form of Franchise Agreement which may have materially different terms and conditions than your initial Franchise Agreement, (g) your and your owners' execution of a general release, (h) your compliance with our then-current qualification and training requirements, and (i) your payment of a renewal fee.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 31–35)

Question 48

Does the Beggars Pizza franchise agreement specify if the renewal is contingent upon the franchisee executing a new franchise agreement?

Accepted Answer

| Provision                                  | Section in Franchise Agreement | Summary                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|--------------------------------------------|--------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| b. Renewal or extension of the term        | 2.2.                                 | You have the right to renew for one additional ten-year term if certain conditions are met.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| c. Requirements to renew or extend         | 2.2.                                 | Conditions include (a) timely delivery of written notice of your election to renew, (b) completion of all maintenance, refurbishing, renovating, and remodeling of the Restaurant and all of the equipment, fixtures, furnishings, and interior and exterior signage as we require so that the Restaurant reflects the then-current image of a Beggars Pizza® Restaurant, (c) your current compliance with your Franchise Agreement and substantial compliance with your Franchise Agreement during the term to date, (d) your satisfaction of all monetary obligations owed to us, our affiliates, and trade creditors, (e) presenting satisfactory evidence of your ability to remain in possession of the Restaurant premises for the duration of the renewal term, (f) your execution of our then-current form of Franchise Agreement which may have materially different terms and conditions than your initial Franchise Agreement, (g) your and your owners' execution of a general release, (h) your compliance with our then-current qualification and training requirements, and (i) your payment of a renewal fee.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 31–35)

Question 49

Does the Beggars Pizza franchise agreement specify if the renewal term begins immediately after the initial term?

Accepted Answer

[Item 17: RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION]

| Provision                                  | Section in Franchise Agreement | Summary                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|--------------------------------------------|--------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| a. Length of the term of the franchise     | 2.1.                                 | Ten years.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| b. Renewal or extension of the term        | 2.2.                                 | You have the right to renew for one additional ten-year term if certain conditions are met.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| c. Requirements to renew or extend         | 2.2.                                 | Conditions include (a) timely delivery of written notice of your election to renew, (b) completion of all maintenance, refurbishing, renovating, and remodeling of the Restaurant and all of the equipment, fixtures, furnishings, and interior and exterior signage as we require so that the Restaurant reflects the then-current image of a Beggars Pizza® Restaurant, (c) your current compliance with your Franchise Agreement and substantial compliance with your Franchise Agreement during the term to date, (d) your satisfaction of all monetary obligations owed to us, our affiliates, and trade creditors, (e) presenting satisfactory evidence of your ability to remain in possession of the Restaurant premises for the duration of the renewal term, (f) your execution of our then-current form of Franchise Agreement which may have materially different terms and conditions than your initial Franchise Agreement, (g) your and your owners' execution of a general release, (h) your compliance with our then-current qualification and training requirements, and (i) your payment of a renewal fee.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 31–35)

Question 50

Does the Beggars Pizza franchise agreement specify any limitations on the use of data licensed back to the franchisee?

Accepted Answer

- 8.5 Data.

All data provided by Franchisee, uploaded to Franchisor's system from Franchisee's system, downloaded from Franchisee's system to Franchisor's system, and/or obtained electronically or otherwise from Franchisee by Franchisor, is and will be owned exclusively by Franchisor, and Franchisor may use such data in any manner that Franchisor deems appropriate without compensation to Franchisee.

In addition, all other data created or collected by Franchisee in connection with the System, or in connection with Franchisee's operation of the Restaurant (including, without limitation, consumer and transaction data), is and will be owned exclusively by Franchisor during the term of, and following termination or expiration of, the Agreement.

Copies and/or originals of such data must be provided to Franchisor upon Franchisor's request.

Franchisor hereby licenses use of such data back to Franchisee, at no additional cost, solely for the term of the Agreement and solely for Franchisee's use in connection with the establishment and operation of the Restaurant pursuant to the Agreement.

Source: Item 22 — CONTRACTS (FDD page 39)

Question 51

Does the Beggars Pizza franchise agreement specify any required upgrades or renovations to the franchise location as a condition of renewal?

Accepted Answer

| Provision                                  | Section in Franchise Agreement | Summary                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|--------------------------------------------|--------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| b. Renewal or extension of the term        | 2.2.                                 | You have the right to renew for one additional ten-year term if certain conditions are met.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| c. Requirements to renew or extend         | 2.2.                                 | Conditions include (a) timely delivery of written notice of your election to renew, (b) completion of all maintenance, refurbishing, renovating, and remodeling of the Restaurant and all of the equipment, fixtures, furnishings, and interior and exterior signage as we require so that the Restaurant reflects the then-current image of a Beggars Pizza® Restaurant, (c) your current compliance with your Franchise Agreement and substantial compliance with your Franchise Agreement during the term to date, (d) your satisfaction of all monetary obligations owed to us, our affiliates, and trade creditors, (e) presenting satisfactory evidence of your ability to remain in possession of the Restaurant premises for the duration of the renewal term, (f) your execution of our then-current form of Franchise Agreement which may have materially different terms and conditions than your initial Franchise Agreement, (g) your and your owners' execution of a general release, (h) your compliance with our then-current qualification and training requirements, and (i) your payment of a renewal fee.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 31–35)

Question 52

Does the Beggars Pizza franchise agreement specify any training requirements for renewal?

Accepted Answer

| Provision                                  | Section in Franchise Agreement | Summary                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|--------------------------------------------|--------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| b. Renewal or extension of the term        | 2.2.                                 | You have the right to renew for one additional ten-year term if certain conditions are met.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| c. Requirements to renew or extend         | 2.2.                                 | Conditions include (a) timely delivery of written notice of your election to renew, (b) completion of all maintenance, refurbishing, renovating, and remodeling of the Restaurant and all of the equipment, fixtures, furnishings, and interior and exterior signage as we require so that the Restaurant reflects the then-current image of a Beggars Pizza® Restaurant, (c) your current compliance with your Franchise Agreement and substantial compliance with your Franchise Agreement during the term to date, (d) your satisfaction of all monetary obligations owed to us, our affiliates, and trade creditors, (e) presenting satisfactory evidence of your ability to remain in possession of the Restaurant premises for the duration of the renewal term, (f) your execution of our then-current form of Franchise Agreement which may have materially different terms and conditions than your initial Franchise Agreement, (g) your and your owners' execution of a general release, (h) your compliance with our then-current qualification and training requirements, and (i) your payment of a renewal fee.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 31–35)

Question 53

Does the Beggars Pizza franchise agreement state that the renewal is dependent on the franchisee signing a new franchise agreement?

Accepted Answer

| Provision                                | Section in Franchise Agreement | Summary                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|------------------------------------------|--------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| m. Conditions for franchisor approval of transfer                       | 14.3.                                | Conditions include: (a) you have satisfied all monetary obligations under your Franchise Agreement, (b) you are not in default of your Franchise Agreement or any other agreement, (c) the payment terms offered by the transferee are not excessive or unreasonable, (d) you and your owners sign a general release, (e) the transferee signs our then-current form of Franchise Agreement, (f) the transferee is approved by us as a franchisee, (g) you remain liable for all accrued obligations to us, (h) the transferee completes any training programs we require, and (i) you pay us a transfer fee.                                                                                                                                                                                                                                                                                                                                                                                      |

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 31–35)

Question 54

Does the Beggars Pizza franchise agreement state whether the terms of the renewed franchise agreement will be the same as the initial agreement?

Accepted Answer

| Provision                                  | Section in Franchise Agreement | Summary                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|--------------------------------------------|--------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| a. Length of the term of the franchise     | 2.1.                                 | Ten years.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| b. Renewal or extension of the term        | 2.2.                                 | You have the right to renew for one additional ten-year term if certain conditions are met.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| c. Requirements to renew or extend         | 2.2.                                 | Conditions include (a) timely delivery of written notice of your election to renew, (b) completion of all maintenance, refurbishing, renovating, and remodeling of the Restaurant and all of the equipment, fixtures, furnishings, and interior and exterior signage as we require so that the Restaurant reflects the then-current image of a Beggars Pizza® Restaurant, (c) your current compliance with your Franchise Agreement and substantial compliance with your Franchise Agreement during the term to date, (d) your satisfaction of all monetary obligations owed to us, our affiliates, and trade creditors, (e) presenting satisfactory evidence of your ability to remain in possession of the Restaurant premises for the duration of the renewal term, (f) your execution of our then-current form of Franchise Agreement which may have materially different terms and conditions than your initial Franchise Agreement, (g) your and your owners' execution of a general release, (h) your compliance with our then-current qualification and training requirements, and (i) your payment of a renewal fee.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 31–35)

Question 55

Is the Beggars Pizza franchise renewal automatic, or are there conditions that must be met?

Accepted Answer

| Provision                                  | Section in Franchise Agreement | Summary                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|--------------------------------------------|--------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| a. Length of the term of the franchise     | 2.1.                                 | Ten years.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| b. Renewal or extension of the term        | 2.2.                                 | You have the right to renew for one additional ten-year term if certain conditions are met.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| c. Requirements to renew or extend         | 2.2.                                 | Conditions include (a) timely delivery of written notice of your election to renew, (b) completion of all maintenance, refurbishing, renovating, and remodeling of the Restaurant and all of the equipment, fixtures, furnishings, and interior and exterior signage as we require so that the Restaurant reflects the then-current image of a Beggars Pizza® Restaurant, (c) your current compliance with your Franchise Agreement and substantial compliance with your Franchise Agreement during the term to date, (d) your satisfaction of all monetary obligations owed to us, our affiliates, and trade creditors, (e) presenting satisfactory evidence of your ability to remain in possession of the Restaurant premises for the duration of the renewal term, (f) your execution of our then-current form of Franchise Agreement which may have materially different terms and conditions than your initial Franchise Agreement, (g) your and your owners' execution of a general release, (h) your compliance with our then-current qualification and training requirements, and (i) your payment of a renewal fee.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 31–35)

Question 56

For a Beggars Pizza franchise renewal, does the franchisee need to obtain the franchisor's approval of a new location if they don't have the right to remain in possession of the Premises?

Accepted Answer

Franchisee must operate the Restaurant only at the location identified in Exhibit A (the "Approved Location").

If, at the time of execution of the Agreement, a location for the Restaurant has not been obtained by Franchisee and approved by Franchisor, Franchisee must lease or acquire a location within ninety (90) days after the date of the Agreement, subject to Franchisor's approval, as provided for in the Site Selection Addendum attached hereto as Exhibit B.

Franchisee will not relocate the Restaurant without the prior written approval of Franchisor.

Franchisor may withhold approval of relocation in Franchisor's sole discretion.

Source: Item 22 — CONTRACTS (FDD page 39)

Question 57

Is a Beggars Pizza franchisee allowed to operate another Beggars Pizza franchise after the termination of the original agreement?

Accepted Answer

#### **16. OBLIGATIONS UPON TERMINATION OR EXPIRATION**

Upon termination or expiration of the Agreement, all rights granted hereunder to Franchisee will forthwith terminate, and:

- 16.1 Cease Operations. Franchisee must immediately cease to operate the Restaurant, and will not thereafter, directly or indirectly, represent to the public or hold itself out as a present or former franchisee of Franchisor. Immediately upon the expiration or termination hereof, Franchisee must dispose of, and not sell, any proprietary or trade secret products sold hereunder including, without limitation, any products bearing the Proprietary Marks or contained in packaging bearing the Proprietary Marks.
- 16.2 Cease Use of Confidential Information and Marks. Franchisee must immediately and permanently cease to use, in any manner whatsoever, any confidential methods, procedures and techniques associated with the System; any Confidential Information; the Proprietary Mark "Beggars Pizza®" and all other Proprietary Marks and distinctive forms, slogans, signs, symbols, and devices associated with the System. In particular, Franchisee must cease to use, without limitation, all signs, advertising materials, displays, stationery, forms, products, and any other articles which display the Proprietary Marks.
- 16.3 Cancellation of Registrations. Franchisee must take such action as may be necessary to cancel any assumed name registration or equivalent registration obtained by Franchisee which contains the mark "Beggars Pizza®" or any other Proprietary Marks, and Franchisee must furnish Franchisor with evidence satisfactory to Franchisor of compliance with this obligation within five (5) days after termination or expiration of the Agreement.

Source: Item 22 — CONTRACTS (FDD page 39)

Question 58

Can a Beggars Pizza franchisee operate a competing pizza business during the term of the agreement if they receive written approval from the franchisor?

Accepted Answer

- 17.2.1 Divert or attempt to divert any present or prospective business or customer of any Restaurant to any competitor, by direct or indirect inducement or otherwise, or do or perform, directly or indirectly, any other act injurious or prejudicial to the goodwill associated with the Proprietary Marks and the System; or
- 17.2.2 Own, maintain, operate, engage in, be employed by, provide any assistance or advice to, or have any interest in (as owner or otherwise) any business that offers or sells pizza, pizza products, Italian-style food, or other food items that are the same as or similar to the products being offered by the Restaurant under the System.
- 17.3 Post-Term Covenants. Franchisee covenants that, except as otherwise approved in writing by Franchisor, Franchisee will not, for a continuous uninterrupted period of two (2) years commencing upon the date of (a) a transfer permitted under Section 14, (b) expiration of the Agreement, (c) termination of the Agreement regardless of the cause for termination, (d) a final order of a duly authorized arbitrator, panel of arbitrators, or a court of competent jurisdiction (after all appeals have been taken) with respect to any of the foregoing or with respect to enforcement of this Section 17.3, or (e) any or all of the foregoing, either directly or indirectly for itself, or through, on behalf of, or in conjunction with any person or legal entity, own, maintain, operate, engage in, be employed by, provide assistance to, or have any interest in (as owner or otherwise) any business that (a) offers or sells pizza, pizza products, Italian-style food, or other food items that are the same as or similar to the products being offered by the Restaurant under the System, and (b) is, or is intended to be, located at or within:
  - 17.3.1 Franchisee's Territory;
  - 17.3.2 Ten (10) miles of the Approved Location; or
  - 17.3.3 Ten (10) miles of any business operating under the Proprietary Marks;

provided, however, that Section 17.2.2 and Section 17.3 will not apply to the operation by Franchisee of any business under the System that is franchised by Franchisor to Franchisee under a written franchise agreement.

Source: Item 22 — CONTRACTS (FDD page 39)

Question 59

Can a Beggars Pizza franchisee renew if they or their affiliates are in default of any agreement with the franchisor?

Accepted Answer

Franchisor may require any or all of the following as conditions of its approval in its sole discretion:

- 14.3.1 That all of Franchisee's accrued monetary obligations and all other outstanding obligations to Franchisor and its affiliates have been satisfied;

- 14.3.2 That Franchisee is not in default of any provision of the Agreement, any amendment hereof or successor hereto, or any other agreement between Franchisee and Franchisor or its affiliates;

Source: Item 22 — CONTRACTS (FDD page 39)

Question 60

Can a Beggars Pizza franchisee transfer their franchise during the initial term?

Accepted Answer

| Provision                                                                     | Section in Franchise Agreement | Summary                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|-------------------------------------------------------------------------------|--------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| i. Franchisee's obligations on termination/non-renewal                  | 16.                                  | You must (a) stop operating the Restaurant, dispose of any proprietary products, and cease holding yourself out as a present or former Beggars Pizza® franchisee, (b) stop using the System, all confidential information, and the Proprietary Marks, (c) cancel all assumed names containing the Proprietary Marks, (d) offer us the option to purchase or assume the lease for the Restaurant, (e) assign all telephone numbers to us that you used in connection with the operation of the Restaurant, (f) refrain from infringing on the Proprietary Marks, (f) pay all sums owing to us and our affiliates, (g) pay us liquidated damages, (h) return the Manuals and all other confidential information to us, (i) cancel or assign to us all Internet domain names, URLs, and Internet sites containing or reflecting the Proprietary Marks, (j) offer us the option to purchase the Restaurant's assets, and (k) comply with non-competition and confidentiality covenants. |
| j. Assignment of contract by franchisor                                    | 14.1.                                | We may transfer or assign your Franchise Agreement or any part of its rights or obligations to any party. Any designated assignee will become solely responsible for all our obligations under your Franchise Agreement from the date of assignment.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| k. "Transfer" by franchisee – defined                                      | 14.2.                                | A "transfer" is when you sell, assign, transfer, convey, pledge, encumber, merge, or give away any direct or indirect interest in your Franchise Agreement, yourself, or all or substantially all of the assets of the Restaurant.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| l. Franchisor approval | 14.2. | Transfers require our prior written consent. |
| of transfer by franchisee |  |  |
| m. Conditions for franchisor approval of transfer                       | 14.3.                                | Conditions include: (a) you have satisfied all monetary obligations under your Franchise Agreement, (b) you are not in default of your Franchise Agreement or any other agreement, (c) the payment terms offered by the transferee are not excessive or unreasonable, (d) you and your owners sign a general release, (e) the transferee signs our then-current form of Franchise Agreement, (f) the transferee is approved by us as a franchisee, (g) you remain liable for all accrued obligations to us, (h) the transferee completes any training programs we require, and (i) you pay us a transfer fee.                                                                                                                                                                                                                                                                                                                                                                                      |
| n. Franchisor's right of first refusal to acquire franchisee's business | 14.5.                                | We may match any offer for your business by a third party.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

| Provision                                                                          | Section in Franchise Agreement | Summary                                                                                                                                                                                                                                                                                                                                                                                                   |
|------------------------------------------------------------------------------------|--------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| o. Franchisor's option to purchase franchisee's business | 16.4, 16.5, and 16.11. | We may require you to assign your lease and/or telephone numbers to us upon the termination or expiration of your Franchise Agreement. We have the option to purchase the assets of the Restaurant from you within 30 days of the termination or expiration of your Franchise Agreement including your equipment, furnishings, and signage. |
| p. Death or disability of franchisee | 14.6. | Upon the death or physical or mental incapacity of any person with an interest in your Franchise Agreement, you, or all or substantially all of the assets of the Restaurant, the executor, administrator, or personal representative of such person must transfer the interest to a third party approved by us within six months subject to the same conditions as any other transfer. |
| q. Non-competition covenants during the term of the franchise | 17.2. | You may not own or have any interest in any business that offers pizza, pizza products, Italian-style food, or other similar food items during the term of your Franchise Agreement. |
| r. Non-competition covenants after the franchise is terminated or expires | 17.3.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 31–35)

Question 61

Can a Beggars Pizza franchisee transfer their franchise during the renewal term?

Accepted Answer

| Provision                                                                     | Section in Franchise Agreement | Summary                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|-------------------------------------------------------------------------------|--------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| i. Franchisee's obligations on termination/non-renewal                  | 16.                                  | You must (a) stop operating the Restaurant, dispose of any proprietary products, and cease holding yourself out as a present or former Beggars Pizza® franchisee, (b) stop using the System, all confidential information, and the Proprietary Marks, (c) cancel all assumed names containing the Proprietary Marks, (d) offer us the option to purchase or assume the lease for the Restaurant, (e) assign all telephone numbers to us that you used in connection with the operation of the Restaurant, (f) refrain from infringing on the Proprietary Marks, (f) pay all sums owing to us and our affiliates, (g) pay us liquidated damages, (h) return the Manuals and all other confidential information to us, (i) cancel or assign to us all Internet domain names, URLs, and Internet sites containing or reflecting the Proprietary Marks, (j) offer us the option to purchase the Restaurant's assets, and (k) comply with non-competition and confidentiality covenants. |
| j. Assignment of contract by franchisor                                    | 14.1.                                | We may transfer or assign your Franchise Agreement or any part of its rights or obligations to any party. Any designated assignee will become solely responsible for all our obligations under your Franchise Agreement from the date of assignment.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| k. "Transfer" by franchisee – defined                                      | 14.2.                                | A "transfer" is when you sell, assign, transfer, convey, pledge, encumber, merge, or give away any direct or indirect interest in your Franchise Agreement, yourself, or all or substantially all of the assets of the Restaurant.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| l. Franchisor approval | 14.2. | Transfers require our prior written consent. |
| of transfer by franchisee |  |  |
| m. Conditions for franchisor approval of transfer                       | 14.3.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 31–35)

Question 62

Does the Beggars Pizza franchisor have the obligation to defend the franchisee against third-party claims arising from the use of Proprietary Marks?

Accepted Answer

Franchisor will defend Franchisee against any third-party claim, suit, or demand arising out of Franchisee's use of the Proprietary Marks.

If Franchisor, in its sole discretion, determines that Franchisee has used the Proprietary Marks in accordance with the Agreement, the cost of such defense, including the cost of any judgment or settlement, will be borne by Franchisor.

If Franchisor, in its sole discretion, determines that Franchisee has not used the Proprietary Marks in accordance with the Agreement, the cost of such defense, including the cost of any judgment or settlement, will be borne by Franchisee.

If any litigation relating to Franchisee's use of the Proprietary Marks arises, Franchisee must execute any documents and perform such acts as may be necessary to carry out such defense or prosecution in Franchisor's sole opinion including, without limitation, becoming a nominal party to any legal action.

Except to the extent that such litigation is the result of Franchisee's use of the Proprietary Marks in a manner inconsistent with the terms of the Agreement, Franchisor will reimburse Franchisee for its out-of-pocket costs in doing such acts; and

Source: Item 22 — CONTRACTS (FDD page 39)

Question 63

Does Beggars Pizza franchisor reserve the right to change the Accounting Period?

Accepted Answer

Each Monday Franchisee must pay to Franchisor all amounts due to Franchisor for the previous Monday through Sunday (i.e., the previous Accounting Period) via electronic funds transfer ("EFT") as set forth in Section 4.6 and Section 4.7.

Franchisor hereby expressly reserves the right to designate such other period (which may include a shorter period) as the Accounting Period that Franchisor may specify in the Manual or in writing from time to time.

Source: Item 22 — CONTRACTS (FDD page 39)

Question 64

For Beggars Pizza, what should happen if a product version differs from the version reviewed by the PCI SSC Assessor?

Accepted Answer

Acceptance and/or listing of a given product by the PCI Security Standards Council, LLC (PCI SSC) only applies to the specific version of that product that was reviewed by an assessor or test laboratory qualified by PCI SSC (Assessor) and subsequently accepted and listed by PCI SSC (the "Accepted Version"), and only while such acceptance and listing are in effect. If any aspect of a product or version thereof is different from that which was reviewed by the applicable Assessor and accepted and listed by PCI SSC - even if the different product or version (the "Alternate Version") conforms to the basic product description of the Accepted Version - then the Alternate Version should not be considered accepted by PCI SSC, nor promoted as such. The authoritative lists of products currently accepted by PCI SSC can be found on the PCI SSC website at www.pcisecuritystandards.org. Please notify PCI SSC if you believe that any product purportedly accepted by PCI SSC does not appear on these lists.

Source: Item 23 — RECEIPT (FDD pages 39–192)

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