According to the agreement, how will Beggars Pizza pay fees?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
At the start of each Accounting Period (as defined below), Supplier will provide Franchisee with an invoice (the "Invoice") containing all current amounts due for all Products purchased during the prior Accounting Period. "Accounting Period" means every seven (7) days beginning on Monday and ending on Sunday.
Each Monday Franchisee must pay to Supplier all amounts due to Supplier for the previous Monday through Sunday (i.e., the previous Accounting Period) via electronic funds transfer ("EFT") as set forth in Section 3(d) below.
Supplier hereby expressly reserves the right to designate such other period (which may include a shorter period) as the Accounting Period that Supplier or Beggars may specify in the Manual or in writing from time to time.
Franchisee must pay for all Product sales within seven (7) days of receipt of each Invoice, which time period may be reduced in Supplier's sole discretion upon written notice to Franchisee.
All such payments must be made by direct deposit or EFT.
If Franchisee fails to pay any Invoice within such period, Supplier will provide Franchisee with notice of such failure and, upon receipt of such notice, Franchisee will have five (5) days to cure such failure.
If Franchisee fails to make all required payments within such five (5)-day cure period, Supplier will have the right to immediately terminate the Agreement.
Source: Item 23 — RECEIPT (FDD pages 39–192)
What This Means (2025 FDD)
According to the 2025 FDD, Beggars Pizza franchisees are required to pay for products purchased from the supplier via electronic funds transfer (EFT) for the previous Monday through Sunday accounting period each Monday. The supplier will provide an invoice at the start of each accounting period, detailing the amounts due for products purchased during the prior period. The accounting period is defined as every seven days, beginning on Monday and ending on Sunday. Beggars Pizza may designate a different accounting period in the manual or in writing.
Franchisees must pay for all product sales within seven days of receiving each invoice, but this period may be shortened at the supplier's discretion with written notice. All payments must be made via direct deposit or EFT. If a franchisee fails to pay an invoice on time, the supplier will provide notice, and the franchisee will have five days to correct the failure. Failure to make all required payments within this five-day cure period gives the supplier the right to immediately terminate the agreement.
This payment structure ensures a consistent and timely flow of funds to the supplier, which is critical for maintaining a stable supply chain. For a prospective Beggars Pizza franchisee, it is essential to maintain a designated bank account for the restaurant's operations and to ensure that all revenues are deposited into this account within two days of receipt. This facilitates easy tracking of income and ensures that funds are available for timely payments to the supplier. The designated bank account must be located within the United States and governed by its laws.