Am I responsible for the cost of advertising and promotional materials provided by Beggars Pizza?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
ertificates, and coupons.
We may periodically make available to you approved advertising and promotional materials including merchandising materials, point-of-purchase materials, and materials for special promotions at your expense. (Franchise Agreement, Section 12.6.)
Brand Fund
You must pay the Brand Fund a weekly fee of 1% of your Gross Sales for the preceding Accounting Period. Your contributions to the Brand Fund are in addition to the required grand opening and local advertising described above. (Franchise Agreement, Section 12.4.) Beggars Pizza® Restaurants owned and operated by us or our affiliates currently contribute to the Brand Fund in the same manner and at the same rates as franchised Beggars Pizza® Restaurants, but they are not required to do so.
We or our affiliates direct all advertising, marketing, and promotional programs and have sole discretion over all aspects of those programs including the concepts, materials, and media used and their placement and allocation.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 19–26)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, franchisees are responsible for the costs of advertising and promotional materials made available by the company. Specifically, Beggars Pizza may periodically offer approved advertising and promotional materials, such as merchandising and point-of-purchase materials, and materials for special promotions, but these are provided "at your expense."
In addition to these direct costs, franchisees must also participate in all promotional programs developed by Beggars Pizza, including the issuance and acceptance of gift cards, loyalty cards, gift certificates, and coupons. Franchisees are also required to contribute to the Brand Fund, paying a weekly fee of 1% of gross sales from the preceding accounting period. These Brand Fund contributions are separate from the required grand opening and local advertising expenses.
Furthermore, franchisees are obligated to spend a minimum of $10,000 on an initial grand opening local advertising, marketing, and promotional program within 30 days of opening their restaurant. For the first three months of operation, an additional $3,000 per month must be spent on local marketing, advertising, and promotion. Following this initial period, franchisees must allocate 2% of gross sales monthly for local marketing, advertising, and promotion, as directed by Beggars Pizza in their manuals or in writing. All advertising and promotional plans must receive written approval from Beggars Pizza, and franchisees must adhere to the standards and requirements set by the company.