Who bears the expense of obtaining a site for the Beggars Pizza restaurant?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Prior to Franchisee's acquisition by lease or purchase of a site for the Restaurant, Franchisee must submit to Franchisor, in the form specified by Franchisor, a completed site review form, such other information or materials as Franchisor may reasonably require, and a letter of intent or other evidence satisfactory to Franchisor which confirms Franchisee's favorable prospects for obtaining the proposed site. Recognizing that time is of the essence, Franchisee must submit a proposed site, together with the information and materials required by this Paragraph 4, to Franchisor for its approval within sixty (60) days after execution of this Site Selection Addendum. Franchisor will have thirty (30) days after receipt of such information and materials from Franchisee to approve or disapprove the site as a location for the Restaurant in Franchisor's sole discretion. No proposed site will be deemed approved unless it has been expressly approved in writing by Franchisor.
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- Franchisor must furnish to Franchisee the following:
- a. Such site selection guidelines and consultation as Franchisor deems advisable;
- b. Such on-site evaluation as Franchisor deems advisable as part of its evaluation of Franchisee's request for site approval; provided, however, that Franchisor will not provide on-site evaluation for any proposed site prior to Franchisor's receipt of the information or materials required by Paragraph 4 hereof. If on-site evaluation is deemed necessary and appropriate by Franchisor, Franchisor will conduct up to two (2) on-site evaluations at Franchisor's
expense. For each additional on-site evaluation (if any), Franchisee must reimburse Franchisor for Franchisor's related expenses including, without limitation, the costs of travel, lodging, and meals.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Beggars Pizza Franchise Disclosure Document, the franchisee is primarily responsible for the expenses related to obtaining a site for their restaurant. The franchisee must acquire a location within 90 days of the franchise agreement, subject to Beggars Pizza's approval, as detailed in the Site Selection Addendum. This includes submitting a site review form, necessary information, and a letter of intent to Beggars Pizza for approval within 60 days of signing the Site Selection Addendum. Failure to secure premises within the specified timeframe constitutes a default under the agreement.
Beggars Pizza offers site selection guidelines and consultation, and may conduct up to two on-site evaluations at its own expense. However, the franchisee is responsible for reimbursing Beggars Pizza for expenses, including travel, lodging, and meals, for any additional on-site evaluations beyond the initial two. Once a site is approved and obtained by the franchisee, it becomes the Approved Location. The franchisee is also responsible for providing Beggars Pizza with a copy of the executed lease within ten days of execution.
The FDD emphasizes that Beggars Pizza's approval of a site does not guarantee its suitability or potential for success. The franchisee is expected to conduct their own independent investigation to determine if the site meets their expectations for revenue and operational criteria. Ultimately, the franchisee bears the financial risk associated with the site's performance.
Furthermore, the franchisee is responsible for maintaining the premises in excellent condition and making necessary repairs, alterations, and replacements at their own expense. This includes periodic repainting and replacement of obsolete items as directed by Beggars Pizza. The franchisee is also obligated to refurbish the premises at their expense, typically every five years, to align with the current image of new Beggars Pizza restaurants, which may involve structural changes and remodeling.