What is the 'Accounting Period' referring to for a Beggars Pizza franchise?
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 Beggars Pizza's 2025 Franchise Disclosure Document, the 'Accounting Period' refers to a seven-day interval, starting on Monday and ending on Sunday. At the start of each accounting period, the supplier provides the franchisee with an invoice that includes all current amounts due for products purchased during the previous accounting period.
Each Monday, the Beggars Pizza franchisee is required to pay the supplier all amounts due for the previous Monday through Sunday period via electronic funds transfer (EFT). However, the supplier reserves the right to designate another period, which may include a shorter period, as the accounting period. This change would be specified in the manual or in writing from time to time.
The franchisee must pay for all product sales within seven days of receiving each invoice. This timeframe may be reduced at the supplier's discretion with written notice to the franchisee. If a franchisee fails to pay any invoice within the specified period, the supplier will provide notice of the failure, and the franchisee will have five days to correct the failure. If the franchisee does not make the required payments within the five-day cure period, the supplier has the right to immediately terminate the agreement.
This payment structure ensures that Beggars Pizza franchisees maintain current accounts with their suppliers. The potential for the supplier to modify the accounting period and payment terms introduces a degree of uncertainty for the franchisee, requiring them to stay informed of any changes to avoid potential penalties or termination of the agreement.