Does the Beggars Pizza Brand Fund cover the costs of brochures and promotional materials?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
12.5.2 The Brand Fund, all contributions thereto, and any earnings thereon, will be used exclusively to meet any costs of maintaining, administering, directing, conducting and preparing advertising, marketing, public relations, and/or promotional programs and materials, and any other activities which Franchisor or its affiliate believes will enhance the image of the System including, without limitation, the costs of preparing and conducting radio, cable television, print, and Internet-based advertising campaigns; utilizing Networking Media Sites and other emerging media or promotional tactics; developing, maintaining, and updating a Website on the Internet; review of locally produced advertisements; door hangers, mailers, inserts and coupons; brochures and promotional materials; market research, market surveys, and sponsorships; web site design and maintenance; public relations and related retainers; mystery shoppers for the System and competitors; celebrity endorsements; trade shows including, without limitation, costs of travel and personnel expenses, trade booths, and specialty entertainment; association dues; search engine optimization; employing advertising and/or public relations agencies; purchasing promotional items; menu development and developing menu items; providing promotional and other marketing materials and services to the businesses operating under the System; developing poster, banners, and signs; and advertising for the sale of franchises.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Beggars Pizza Franchise Disclosure Document, the Brand Fund can be used to cover the costs of brochures and promotional materials. The Brand Fund is used to enhance the image of the Beggars Pizza system.
The FDD specifies that the Brand Fund can be used to meet the costs of preparing advertising, marketing, public relations, and/or promotional programs and materials. This includes preparing and conducting radio, cable television, print, and Internet-based advertising campaigns, utilizing Networking Media Sites, developing and maintaining a Website, and creating door hangers, mailers, inserts and coupons.
In addition to brochures and promotional materials, the Brand Fund can also be used for market research, sponsorships, website design and maintenance, public relations, mystery shoppers, celebrity endorsements, trade shows, association dues, search engine optimization, advertising agencies, promotional items, menu development, posters, banners, and signs. The franchisor has sole discretion over the advertising programs, concepts, materials and media used, and their placement and allocation.
All sums paid by the franchisee to the Brand Fund will be maintained in a separate account from the other monies of Beggars Pizza and will not be used to defray any of Beggars Pizza's expenses, except for reasonable costs and overhead related to the direction and implementation of the Brand Fund and advertising programs. It is anticipated that all contributions to and earnings of the Brand Fund will be expended for advertising and/or promotional purposes during the taxable year within which the contributions are made.