edge_case

What are the consequences if a Beggars Pizza franchisee fails to adhere to the prescribed operating standards?

Beggars_Pizza Franchise · 2025 FDD

Answer from 2025 FDD Document

Should Franchisee, for any reason, fail to correct such deficiencies within a reasonable time as determined by Franchisor, Franchisor will have the right, but not the obligation, to correct any deficiencies which may be susceptible to correction by Franchisor and to charge Franchisee a reasonable fee for Franchisor's expenses in so acting, payable to Franchisor upon demand.

The foregoing will be in addition to such other remedies Franchisor may have.

  • 15.3.1 If Franchisee fails to maintain the cleanliness of the Restaurant or fails to comply with any of Franchisor's specifications;
  • 15.3.2 If Franchisee fails to substantially comply with any of the requirements imposed by the Agreement, as it may from time to time reasonably be supplemented by the Manual, or failure to carry out the terms of the Agreement in good faith;
  • 15.3.3 If Franchisee fails, refuses, or neglects to promptly pay any monies owing to Franchisor or its affiliates when due, or to submit the financial or other information required by Franchisor under the Agreement;
  • 15.3.4 If Franchisee fails to maintain or observe any of the standards or procedures prescribed by Franchisor in the Agreement, the Manual, or otherwise in writing;
  • 15.3.5 Except as provided in Section 15.2.6, if Franchisee fails, refuses, or neglects to obtain Franchisor's prior written approval or consent as required by the Agreement;
  • 15.3.6 If Franchisee acts, or fails to act, in any manner which is inconsistent with or contrary to its lease or sublease for the Premises, or in any way jeopardizes its right to renewal of such lease or sublease;
  • 15.3.7 If Franchisee engages in any business or markets any service or product under a name or mark which, in Franchisor's opinion, is confusingly similar to the Proprietary Marks;
  • 15.3.8 If Franchisee receives any citation or notice of potential health code violation from the local board of health or Franchisor;
  • 15.3.9 If Franchisee fails to provide delivery services within Franchisee's Territory as required by Section 7.5; or
  • 15.3.10If Franchisee fails to maintain acceptable customer satisfaction scores as prescribed by Franchisor from time to time in the Manual or otherwise in writing, based on customer surveys or secret shopper programs conducted by Franchisor or its designee.
  • 15.4 Suspension of Product Shipments. Upon Franchisee's failure to cure any curable default under the Agreement as described in Section 15.3, Franchisor may suspend or refuse shipment to Franchisee of additional products which Franchisor or Begcom is providing to Franchisee pursuant to the Agreement in Franchisor's sole discretion until such time as Franchisee

Source: Item 22 — CONTRACTS (FDD page 39)

What This Means (2025 FDD)

According to Beggars Pizza's 2025 Franchise Disclosure Document, several consequences may arise if a franchisee fails to maintain the cleanliness of the restaurant or comply with Beggars Pizza's specifications. Beggars Pizza may choose to correct any deficiencies susceptible to correction and charge the franchisee a reasonable fee for expenses. This fee is payable to Beggars Pizza upon demand and is in addition to any other remedies Beggars Pizza may have.

Additionally, if a franchisee fails to cure any curable default under the agreement, Beggars Pizza may suspend or refuse shipment of additional products that Beggars Pizza or Begcom is providing to the franchisee. This suspension will be in effect until the franchisee remedies the default.

Furthermore, failure to maintain standards or procedures prescribed by Beggars Pizza in the agreement, the manual, or in writing, can lead to termination of the franchise agreement. Specific instances that could lead to termination include failing to maintain cleanliness, not complying with specifications, failing to meet requirements in the agreement or manual, neglecting to pay monies owed, failing to obtain prior written approval when required, acting inconsistently with the lease, engaging in business with a confusingly similar name, receiving health code violations, failing to provide required delivery services, or failing to maintain acceptable customer satisfaction scores.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.