What is the administrative surcharge if Beggars Pizza procures insurance on behalf of the franchisee?

According to Beggars Pizza's 2025 Franchise Disclosure Document, if a franchisee fails to obtain or maintain the required insurance, Beggars Pizza has the right to procure the insurance on the franchisee's behalf. If Beggars Pizza exercises this right, the franchisee must pay Beggars Pizza the full premium paid for the insurance, plus an administrative surcharge of 10%.

This means that if a franchisee neglects to secure the necessary insurance coverage, Beggars Pizza can step in to ensure the restaurant is properly insured. However, this comes at a cost to the franchisee, as they will not only be responsible for the insurance premium but also an additional 10% surcharge. This surcharge is designed to cover the administrative costs incurred by Beggars Pizza in arranging the insurance.

For a prospective Beggars Pizza franchisee, this highlights the importance of maintaining continuous and adequate insurance coverage. Failing to do so can result in additional expenses beyond the standard insurance premiums. Franchisees should ensure they understand the insurance requirements outlined in the Franchise Agreement and maintain open communication with Beggars Pizza to avoid any lapses in coverage and the associated surcharge.