Who bears the cost of evaluation and testing when a Beggars Pizza franchisee proposes a new supplier?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, if a franchisee wants to purchase products from a supplier not already approved by Beggars Pizza, the franchisee must submit a written request for approval. This request must include evidence that the proposed supplier meets Beggars Pizza's standards and specifications.
Beggars Pizza may then require its representatives to inspect the supplier's facilities and request samples for evaluation and testing. These tests can be conducted either by Beggars Pizza or by an independent testing facility designated by Beggars Pizza.
The FDD clearly states that the franchisee is responsible for paying a charge that does not exceed the cost of this evaluation and testing. Beggars Pizza is then obligated to notify the franchisee in writing regarding the approval or disapproval of the proposed supplier within 30 days after the completion of the evaluation and testing. The franchisee cannot sell or offer for sale any products from the proposed supplier until written approval is received from Beggars Pizza.
This policy ensures that all products used in a Beggars Pizza restaurant meet the franchisor's standards, maintaining consistency and quality across all locations. It also means that franchisees need to factor in potential testing costs when considering alternative suppliers.