factual

Who bears the expense for approved advertising and promotional materials made available by Beggars Pizza?

Beggars_Pizza Franchise · 2025 FDD

Answer from 2025 FDD Document

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.)

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 expense of approved advertising and promotional materials made available to them by Beggars Pizza. Specifically, Beggars Pizza may periodically offer merchandising, point-of-purchase, and special promotion materials, but the cost of these materials is borne by the franchisee.

This means that while Beggars Pizza provides the approved materials, franchisees must budget for and pay for these resources to support their local marketing efforts. This is a common arrangement in franchising, where the franchisor develops the marketing strategy and materials, but the franchisee pays for their implementation at the local level.

In addition to these direct costs, franchisees must also pay a weekly fee of 1% of their gross sales to the Brand Fund, which supports broader advertising, marketing, and promotional programs. This contribution is separate from the costs associated with the approved advertising and promotional materials that Beggars Pizza makes available to franchisees. Franchisees should factor in both the Brand Fund contribution and the cost of purchasing approved advertising materials when assessing their overall marketing expenses.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.