What actions related to the lease or sublease of the premises can put a Beggars Pizza franchisee in default?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
| ("Franchisee") have, on this date, | , 20 |
|---|---|
| , entered into a certain | |
| Beggars Pizza Franchise, LLC Franchise Agreement (the "Agreement") and desire to supplement | |
| its terms, as set forth below. The parties hereto therefore agree as follows: | |
| Within ninety (90) days after Franchisee's execution of the Agreement, Franchisee | |
| must obtain a site, at Franchisee's expense, for the Beggars Pizza® restaurant (the "Restaurant") | |
| franchised under the Agreement, which premises must be approved by Franchisor as hereinafter | |
| provided. The premises must be within the following territory (the "Site Selection Territory"): | |
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- Failure by Franchisee to obtain premises for the Restaurant within the time required in Paragraph 1 hereof will constitute a default under the Agreement and this Site Selection Addendum. Time is of the essence.
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- Franchisor will not establish, nor franchise another to establish, a Beggars Pizza® restaurant within the Site Selection Territory until Franchisor approves a location for the Restaurant or until the time set forth in Paragraph 1 expires, whichever event first occurs.
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- Prior to Franchisee's acquisition by lease or purchase of a site for the Restaurant, Franchisee must submit to Franchisor, in the form specified by Franchisor, a completed site review form, such other information or materials as Franchisor may reasonably require, and a letter of intent or other evidence satisfactory to Franchisor which confirms Franchisee's favorable prospects for obtaining the proposed site.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Beggars Pizza Franchise Disclosure Document, a franchisee can be in default of their agreement if they fail to obtain premises for the restaurant within the required timeframe outlined in the agreement. Specifically, if a location for the Beggars Pizza restaurant has not been secured and approved at the time of the agreement's execution, the franchisee is obligated to lease or acquire a location within ninety (90) days from the agreement date. This acquisition is subject to Beggars Pizza's approval, as detailed in the Site Selection Addendum.
Furthermore, the franchisee is required to submit a completed site review form, along with any other information or materials reasonably requested by Beggars Pizza, and a letter of intent or other evidence confirming favorable prospects for obtaining the proposed site. This submission must occur within sixty (60) days after the execution of the Site Selection Addendum. Beggars Pizza then has thirty (30) days to either approve or disapprove the proposed site. It is important to note that no site is considered approved unless Beggars Pizza provides express written approval.
These stipulations highlight the importance of adhering to the timelines and approval processes set forth by Beggars Pizza in securing a location. Failure to meet these requirements can result in a default under the franchise agreement, potentially leading to termination of the franchise. Prospective franchisees should carefully review the Site Selection Addendum and understand their obligations regarding site acquisition and approval to avoid default.