Is the Beggars Pizza Brand Fund contribution in addition to local advertising spending?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
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Note 3. Our affiliate, Beg Adv, Inc., maintains a dedicated marketing fund for the benefit of the System (the "Brand Fund"). Your required contribution to the Brand Fund is in addition to the amount you must spend on local advertising for the Restaurant. During your first three months of
operation, you must spend at least $3,000 per month on local advertising (with the first month prorated if necessary), and for each subsequent month you must spend at least 2% of your monthly Gross Sales. See Item 11 of this disclosure document for more information about the Brand Fund and your local marketing
Source: Item 6 — OTHER FEES (FDD pages 9–11)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, contributions to the Brand Fund are separate from and in addition to the franchisee's local advertising obligations.
The FDD specifies that a franchisee's required contribution to the Brand Fund is in addition to the amount they must spend on local advertising for their restaurant. During the first three months of operation, a new Beggars Pizza franchisee must spend at least $3,000 per month on local advertising, with the first month prorated if necessary. After this initial period, the franchisee must spend at least 2% of their monthly Gross Sales on local advertising.
This means that franchisees must budget for both the Brand Fund contribution (as detailed in Item 11) and the mandatory local advertising expenses. The local advertising requirement ensures that franchisees actively promote their individual locations within their communities, while the Brand Fund supports broader, system-wide marketing initiatives.
Prospective franchisees should carefully review Item 11 of the FDD to understand the specific details of the Brand Fund contribution, including how the funds are used and any potential changes to the contribution requirements. Understanding both the Brand Fund and local advertising obligations is crucial for accurate financial planning.