For Beggars Pizza, what are the conditions under which either party may terminate the agreement?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
The Agreement will automatically terminate upon the termination of the Franchise Agreement. Either party will have the right to terminate the Agreement upon thirty (30) days prior written notice and opportunity to cure if a material default by the other party occurs.
Source: Item 23 — RECEIPT (FDD pages 39–192)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, the agreement between the franchisee and the supplier can be terminated under specific conditions. The agreement automatically terminates upon the termination of the Franchise Agreement.
Either party, whether it's the supplier or the franchisee, has the right to terminate the agreement if a material default occurs by the other party. However, this termination is not immediate. The party intending to terminate must provide thirty (30) days prior written notice to the other party, giving them an opportunity to correct the default.
This clause ensures that both parties have a chance to resolve any issues before resorting to termination, which is a standard practice in franchising to encourage dispute resolution and maintain the business relationship. It is important for a prospective Beggars Pizza franchisee to understand what constitutes a 'material default' as defined in their specific agreements, as this will be the trigger for such a termination clause.