After Beggars Pizza assigns a Franchise Agreement, does Beggars Pizza retain any responsibility for the obligations under the agreement?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
rminate that | | | | other agreement. |
| 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 can transfer or assign the Franchise Agreement, or any part of its rights or obligations, to another party. If Beggars Pizza assigns the Franchise Agreement, the assignee becomes solely responsible for all of Beggars Pizza's obligations under the Franchise Agreement from the date of the assignment.
For a prospective franchisee, this means that the original Beggars Pizza franchisor is no longer responsible for upholding the agreement's terms once the assignment is complete. The new assignee takes on all responsibilities. This is a standard practice in franchising, allowing franchisors flexibility in managing their business and potentially selling off franchise territories or agreements.
It is important for a franchisee to understand the implications of such an assignment. While the terms of the Franchise Agreement remain the same, the entity responsible for fulfilling the franchisor's obligations changes. This could affect the franchisee's relationship with the franchisor and the level of support they receive. Franchisees should carefully review the background and capabilities of any potential assignee to ensure they are comfortable with the new franchisor.