What are the consequences if the Beggars Pizza franchisor disapproves the proposed site?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Failure by Franchisee to obtain premises for the Restaurant within the time required in Paragraph 1 hereof will constitute a default under the Agreement and this Site Selection Addendum. Time is of the essence.
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- Prior to Franchisee's acquisition by lease or purchase of a site for the Restaurant, Franchisee must submit to Franchisor, in the form specified by Franchisor, a completed site review form, such other information or materials as Franchisor may reasonably require, and a letter of intent or other evidence satisfactory to Franchisor which confirms Franchisee's favorable prospects for obtaining the proposed site. Recognizing that time is of the essence, Franchisee must submit a proposed site, together with the information and materials required by this Paragraph 4, to Franchisor for its approval within sixty (60) days after execution of this Site Selection Addendum. Franchisor will have thirty (30) days after receipt of such information and materials from Franchisee to approve or disapprove the site as a location for the Restaurant in Franchisor's sole discretion. No proposed site will be deemed approved unless it has been expressly approved in writing by Franchisor.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Beggars Pizza Franchise Disclosure Document, a franchisee's failure to secure premises for the restaurant within the timeframe specified in the Site Selection Addendum constitutes a default under both the Franchise Agreement and the Site Selection Addendum. The agreement emphasizes that 'time is of the essence' in this process.
Specifically, the franchisee is required to submit a proposed site, along with all necessary information, to Beggars Pizza for approval within 60 days of signing the Site Selection Addendum. Beggars Pizza then has 30 days to either approve or disapprove the proposed site at its sole discretion. It is important to note that a site is only considered approved if Beggars Pizza provides explicit written approval.
This means that if Beggars Pizza disapproves a proposed site, and the franchisee does not obtain an approved site within the initial timeframe, the franchisee would be in default of their agreement. This could potentially lead to termination of the franchise agreement, highlighting the importance of thorough site selection and communication with Beggars Pizza during the site approval process.