Can Beggars Pizza assign its Franchise Agreement to another party?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| i. Franchisee's obligations on termination/non-renewal | 16. | You must (a) stop operating the Restaurant, dispose of any proprietary products, and cease holding yourself out as a present or former Beggars Pizza® franchisee, (b) stop using the System, all confidential information, and the Proprietary Marks, (c) cancel all assumed names containing the Proprietary Marks, (d) offer us the option to purchase or assume the lease for the Restaurant, (e) assign all telephone numbers to us that you used in connection with the operation of the Restaurant, (f) refrain from infringing on the Proprietary Marks, (f) pay all sums owing to us and our affiliates, (g) pay us liquidated damages, (h) return the Manuals and all other confidential information to us, (i) cancel or assign to us all Internet domain names, URLs, and Internet sites containing or reflecting the Proprietary Marks, (j) offer us the option to purchase the Restaurant's assets, and (k) comply with non-competition and confidentiality covenants. |
| j. Assignment of contract by franchisor | 14.1. | We may transfer or assign your Franchise Agreement or any part of its rights or obligations to any party. Any designated assignee will become solely responsible for all our obligations under your Franchise Agreement from the date of assignment. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 31–35)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, Beggars Pizza has the right to transfer or assign the Franchise Agreement to another party. Specifically, Beggars Pizza can assign the agreement, or any part of its rights or obligations, to any other party.
This means that a new entity could take over the franchisor's responsibilities. The designated assignee then becomes solely responsible for all of Beggars Pizza's obligations under the Franchise Agreement from the date of assignment.
This is a standard clause in most franchise agreements, allowing the franchisor flexibility in its business operations. However, it is important for a franchisee to understand that the entity they initially contracted with may change during the term of the agreement.