What was Begcom's revenue from sales to Beggars Pizza franchisees in 2024?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
delivery basis.
We derived no revenues during our fiscal year ending December 31, 2024, from required franchisee purchases. In the year ending December 31, 2024, Begcom derived approximately $6,398,528 in revenue from the sale of approved products to our franchisees and our affiliateowned Beggars Pizza® Restaurants. Beg Adv, Inc. derived approximately $252,148 in rebates or commissions from required franchisee purchases and affiliate-owned Beggars Pizza® Restaurant
purchases from our designated and approved suppliers; specifically, it received rebates for purchases of sodas (approximately $3.00 per gallon), food and paper products (flat fee ranging from approximately $1.00 to $7.00), meat and other pizza toppings ($0.10 per pound), and pizza sauce ($1.00 to $1.50 per case). All rebates, including those generated by affiliate-owned locations, were contributed to the Brand Fund operated by Beg Adv, Inc. and described in Item 11. Laurance Garetto and Cheryl Garetto own an int
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 15–18)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, Begcom, an affiliate of Beggars Pizza, generated revenue from the sale of approved products to both franchisees and affiliate-owned Beggars Pizza restaurants. In the year ending December 31, 2024, Begcom's revenue from these sales totaled approximately $6,398,528.
This figure is important for prospective franchisees because it highlights the financial relationship between Beggars Pizza and its affiliate, Begcom. Franchisees are required to purchase certain products from Begcom, as detailed in Item 8, and this revenue stream is a significant part of Begcom's business. Understanding the magnitude of these sales can give franchisees insight into the importance of Begcom as a supplier within the Beggars Pizza system.
It's also worth noting that Beg Adv, Inc., another affiliate, derived approximately $252,148 in rebates or commissions from required franchisee purchases and affiliate-owned Beggars Pizza restaurant purchases from designated and approved suppliers. These rebates, generated from purchases of items like sodas, food and paper products, meat, pizza toppings, and pizza sauce, were contributed to the Brand Fund operated by Beg Adv, Inc., as described in Item 11. This demonstrates how the purchasing power of the Beggars Pizza system is leveraged to generate funds for brand-related activities.