What actions are prohibited that may injure the Beggars Pizza franchisee or franchisor?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
al investigative, enforcement, or oversight efforts.
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- While in my position with Franchisee, I will not do anything that may injure Franchisee or Franchisor, such as (a) divert or attempt to divert any present or prospective business or customer of any Beggars Pizza® restaurant to any competitor, by direct or indirect inducement or otherwise; or (b) directly or indirectly perform any other act injurious or prejudicial to the goodwill associated with Franchisor's marks and the System.
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- While in my position with Franchisee and for two (2) years after I cease to be in my position with Franchisee, I will not own, maintain, operate, engage in, be employed by, provide any assistance or advise 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 Beggars Pizza® restaurants under the System, and (b) is, or is intended to be, located at or within (i) Franchisee's Territory as defined in Franchisee's franchise agreement with Franchisor (the "Franchise Agreement"), the boundaries of which I acknowledge have been described to me, (ii) a radius of ten (10) miles from the premises of Franchisee's Beggars Pizza® restaurant, or (iii) a radius of ten (10) miles of any business operating under Franchisor's marks.
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- Franchisor is a third-party beneficiary of the Agreement and may enforce it solely and/or jointly with Franchisee. I am aware that my violation of the Agreement will cause Franchisor and Franchisee irreparable harm. I acknowledge and agree that Franchisor and/or Franchisee may apply for the issuance of an injunction preventing me from violating the Agreement in addition to any other remedies they may have at law or in equity. I will pay Franchisor and Franchisee all costs incurred including, without limitation, attorneys' fees, if the Agreement is enforced against me. Due to the importance of the Agreement to Franchisor and Franchisee, any claim I have against Franchisor or Franchisee is a separate matter and does not entitle me to violate, or justify any violation of, the Agreement. If any part of the Agreement is held invalid by a court or agency having valid jurisdiction, the rest of the Agreement is still enforceable, and the part held invalid is enforceable to the extent found reasonable by the court or agency. I agree that all the words and phrases used in the Agreement will have the same meaning as used in the Franchise Agreement and that such meanings have been explained to me.
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- Franchisor may reduce the scope of any covenant set forth in the Agreement in Franchisor's sole discretion without my consent effective immediately upon my receipt of written notice thereof. I will comply with any covenant as so modified.
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- The Agreement will be construed under the laws of Illinois.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 36–39)
What This Means (2025 FDD)
According to the 2025 Beggars Pizza Franchise Disclosure Document, as an employee of the franchisee, certain actions are prohibited that could harm the franchisee or franchisor. Specifically, employees are prohibited from diverting or attempting to divert any present or prospective business or customer of any Beggars Pizza restaurant to any competitor, whether through direct or indirect means. Additionally, employees cannot directly or indirectly perform any action that is injurious or prejudicial to the goodwill associated with the franchisor's marks and the Beggars Pizza system.
Furthermore, while employed by the franchisee and for two years after leaving that position, the employee is restricted from owning, maintaining, operating, engaging in, being employed by, providing assistance or advice to, or having any interest in any business that offers or sells pizza, pizza products, Italian-style food, or other similar food items. This restriction applies if the business is located within the franchisee's territory, within a 10-mile radius of the franchisee's Beggars Pizza restaurant, or within a 10-mile radius of any business operating under the franchisor's marks.
These restrictions are designed to protect Beggars Pizza's market share, brand reputation, and the interests of both the franchisor and its franchisees. Violation of these terms can result in legal action, including injunctions and financial penalties, as the franchisor is a third-party beneficiary of the agreement and can enforce it. The agreement is governed by Illinois law, and any modifications must be in writing and signed by both the franchisee and the employee.