Does the Beggars Pizza Brand Fund cover the costs of sponsorships?
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 Beggars Pizza's 2025 Franchise Disclosure Document, the Brand Fund can be used for sponsorships. The Brand Fund is used to enhance the image of the Beggars Pizza system. The franchisor has sole discretion over the advertising programs, including the concepts, materials, and media used.
The funds can be used for various activities that the franchisor believes will enhance the image of the Beggars Pizza system. These activities include preparing and conducting advertising campaigns across different media, utilizing networking media sites, developing and maintaining a website, reviewing locally produced advertisements, and creating promotional materials.
Specifically, the Brand Fund can cover the costs of market research, market surveys, and sponsorships. It can also be used for website design and maintenance, public relations, mystery shoppers, celebrity endorsements, trade shows, association dues, search engine optimization, and employing advertising agencies. The fund may also cover purchasing promotional items, menu development, providing marketing materials, and developing posters, banners, and signs.
This means that a portion of the fees that Beggars Pizza franchisees pay into the Brand Fund may be allocated to sponsorships that the franchisor deems beneficial for the overall brand image. However, the franchisor is not obligated to ensure that each franchisee benefits directly or proportionally from these expenditures.