What are the consequences if a Beggars Pizza franchisee fails to comply with the covenants in Section 17.2?

According to Beggars Pizza's 2025 Franchise Disclosure Document, failure to comply with the covenants in Section 17.2 can result in the termination of the franchise agreement. Section 17.2 includes covenants related to not diverting business or customers to competitors and not engaging in or having an interest in any business that offers similar food items to Beggars Pizza.

Specifically, Item 15.2.8 states that the franchise agreement can be terminated if a franchisee fails to comply with the covenants in Section 17.2. This means that if a franchisee violates the terms outlined in Section 17.2, Beggars Pizza has the right to terminate the franchise agreement.

This is a significant risk for franchisees, as termination of the agreement would mean losing the right to operate the Beggars Pizza franchise and potentially losing any investment made in the business. It is important for prospective franchisees to carefully review and understand the covenants in Section 17.2 and ensure they can comply with these terms to avoid potential termination of their franchise agreement.