What are some conditions Beggars Pizza may require for approving a transfer?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor will not unreasonably withhold its consent to a transfer.
Franchisor may require any or all of the following as conditions of its approval in its sole discretion:
14.3.1 That all of Franchisee's accrued monetary obligations and all other outstanding obligations to Franchisor and its affiliates have been satisfied;
14.3.2 That Franchisee is not in default of any provision of the Agreement, any amendment hereof or successor hereto, or any other agreement between Franchisee and Franchisor or its affiliates;
14.3.3 That the consideration or payment terms offered by a proposed transferee are not excessive or unreasonable, based on the gross revenues of the Restaurant and sale prices of other Beggars Pizza® restaurants in the System in Franchisor's reasonable business judgment;
14.3.4 That the transferor executes a general release, in a form satisfactory to Franchisor, of any claims against Franchisor and its affiliates, and their respective officers, directors, agents, shareholders, and employees;
14.3.5 That (a) (i) the transferee (and if the transferee is other than an individual, such owners of a beneficial interest in the transferee as Franchisor may request) enters into a written assignment, in a form satisfactory to Franchisor, assuming and agreeing to discharge all of Franchisee's obligations under the Agreement, or (ii) the transferee executes, for a term ending on the expiration date of the Agreement and with such renewal terms as may be provided by the Agreement, Franchisor's then-current form of franchise agreement and other ancillary agreements as Franchisor may require for the Restaurant, which agreements will supersede the Agreement in all respects, and the terms of which may differ from the terms of the Agreement including, without limitation, a higher royalty fee and advertising contribution and a smaller or modified Franchisee's Territory, except that transferee will not be required to pay any initial franchise fee, and (b) the transferee or its principals guarantee the performance of all such obligations in writing in a form satisfactory to Franchisor;
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, the franchisor will not unreasonably withhold consent to a transfer of the franchise. However, Beggars Pizza may require certain conditions to be met before approving a transfer, at their sole discretion.
Some of these conditions include ensuring that all of the franchisee's accrued monetary obligations and any other outstanding obligations to Beggars Pizza and its affiliates are satisfied. Additionally, the franchisee must not be in default of any provision of the Franchise Agreement or any other agreement with Beggars Pizza or its affiliates.
Beggars Pizza may also assess the consideration or payment terms offered by the proposed transferee, ensuring they are not excessive or unreasonable based on the restaurant's gross revenues and the sale prices of other Beggars Pizza restaurants. Furthermore, the transferor may be required to execute a general release of any claims against Beggars Pizza and its affiliates. The transferee may also be required to enter into a written assignment assuming all of the franchisee's obligations under the agreement, or execute Beggars Pizza's current form of franchise agreement, which may include different terms such as higher royalty fees and advertising contributions. The transferee or its principals may also need to guarantee the performance of all obligations in writing.