Can Beggars Pizza or its affiliates be designated as the only approved supplier?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor may designate itself or an affiliate to be an approved supplier, or the only approved supplier, of any products or other items;
If Franchisee desires to purchase products from a party other than an approved supplier, Franchisee must submit to Franchisor a written request to approve the proposed supplier, together with such evidence of conformity with Franchisor's specifications as Franchisor may reasonably require.
Franchisor may require that its representatives be permitted to inspect the supplier's facilities and that samples from the supplier be delivered for evaluation and testing either to Franchisor or an independent testing facility designated by Franchisor.
Franchisee must pay a charge not to exceed the cost of the evaluation and testing.
Franchisor must use its best efforts to notify Franchisee in writing of its approval or disapproval of the proposed supplier within thirty days after the completion of such evaluation and testing.
Franchisee must not sell or offer for sale any products of the proposed supplier until Franchisor's written approval of the proposed supplier is received.
Franchisor may from time to time revoke its approval of particular products or suppliers when Franchisor determines, in its sole discretion, that such products or suppliers no longer meet Franchisor's standards.
Upon receipt of written notice of such revocation, Franchisee must cease to sell
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, Beggars Pizza has the right to designate itself or an affiliate as the only approved supplier of products or other items. This means that franchisees may be required to purchase certain or all products exclusively from Beggars Pizza or its affiliated company.
If a franchisee wishes to purchase products from a supplier that is not already approved, they must submit a written request to Beggars Pizza for approval. Beggars Pizza may then require an inspection of the supplier's facilities and samples for evaluation and testing, the cost of which will be borne by the franchisee. Beggars Pizza is expected to notify the franchisee of its decision within 30 days after the completion of the evaluation and testing. The franchisee cannot sell products from the proposed supplier until written approval is received.
Beggars Pizza also retains the right to revoke approval of particular products or suppliers if they no longer meet the company's standards. Franchisees must cease selling products from a supplier upon receiving written notice of such revocation. This allows Beggars Pizza to maintain quality control and uniformity across all franchise locations, but it also limits the franchisee's autonomy in sourcing products and potentially increases their costs if Beggars Pizza's approved suppliers are more expensive than other alternatives.