What is the approximate rebate per gallon for sodas purchased by Beggars Pizza franchisees?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
isee purchases. In the year ending December 31, 2024, Begcom derived approximately $6,398,528 in revenue from the sale of approved products to our franchisees and our affiliateowned Beggars Pizza® Restaurants. Beg Adv, Inc. derived approximately $252,148 in rebates or commissions from required franchisee purchases and affiliate-owned Beggars Pizza® Restaurant
purchases from our designated and approved suppliers; specifically, it received rebates for purchases of sodas (approximately $3.00 per gallon), food and paper products (flat fee ranging from approximately $1.00 to $7.00), meat and other pizza toppings ($0.10 per pound), and pizza sauce ($1.00 to $1.50 per case). All rebates, including those generated by affiliate-owned locations, were contributed to the Brand Fund operated by Beg Adv, Inc. and described in Item 11. Laurance Garetto and Cheryl Garetto own an int
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 15–18)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, Beg Adv, Inc. received rebates for soda purchases made by franchisees and affiliate-owned restaurants. These rebates were approximately $3.00 per gallon. All rebates, including those generated by affiliate-owned locations, were contributed to the Brand Fund operated by Beg Adv, Inc.
This means that while Beggars Pizza franchisees are required to purchase sodas from designated and approved suppliers, a portion of the money spent comes back to the Brand Fund in the form of rebates. These rebates are not directly given to the franchisees but are instead used to support the Brand Fund, which is used for advertising and promotional activities as described in Item 11.
For a prospective Beggars Pizza franchisee, this highlights the importance of understanding how the Brand Fund operates and how it benefits their business. While they won't directly receive the $3.00 per gallon rebate, the funds are used to support the brand as a whole, which can indirectly benefit their restaurant through increased brand awareness and customer traffic.