What are the consequences if a Beggars Pizza franchisee ceases to operate or abandons the restaurant?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
- 15.2.3 If Franchisee at any time ceases to operate or otherwise abandons the Restaurant, or loses the right to possession of the Premises, or otherwise forfeits the right to do or transact business in the jurisdiction where the Restaurant is located.
However, if, through no fault of Franchisee, the Restaurant is damaged or destroyed by an event such that repairs or reconstruction cannot be completed within sixty (60) days thereafter,
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Beggars Pizza Franchise Disclosure Document, if a franchisee ceases to operate or abandons the restaurant, it can lead to a termination of the franchise agreement. Specifically, the franchise agreement can be terminated if the franchisee ceases operations, abandons the restaurant, loses possession of the premises, or forfeits the right to conduct business in the relevant jurisdiction.
In the event of termination or expiration of the franchise agreement, the franchisee must immediately cease operating the Beggars Pizza restaurant and cannot represent themselves as a current or former franchisee. The franchisee is also prohibited from selling any proprietary or trade secret products, including those bearing Beggars Pizza's trademarks.
Furthermore, the franchisee must immediately and permanently stop using any confidential methods, procedures, techniques, and information associated with the Beggars Pizza system, including the brand's proprietary marks, slogans, signs, symbols, and devices. The franchisee is also required to cancel any assumed name registrations containing the "Beggars Pizza®" mark and provide evidence of compliance to Beggars Pizza within five days of termination or expiration. Beggars Pizza also has the option to have the franchisee assign any interest in the lease or sublease for the premises to Beggars Pizza. If Beggars Pizza does not exercise this option, the franchisee must modify the premises to differentiate its appearance from a Beggars Pizza restaurant, as reasonably requested by Beggars Pizza.