What is the consideration, besides the employee's position, for the Confidentiality and Non-Competition Agreement related to Beggars Pizza?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
In consideration of my position as of ("Franchisee"), and One Dollar, receipt of which is acknowledged, I hereby acknowledge and agree that:
Beggars Pizza Franchise, LLC ("Franchisor"), as the result of the expenditure of time, skill, effort, and money, has developed, and continues to develop, a distinctive system relating to the establishment, operation, and promotion of Beggars Pizza® restaurants that offer pizza and other food products and non-alcoholic and alcoholic beverages for sale and consumption on the premises, for carry-out sale to customers, for consumption off the premises, for delivery to customers, for catering, for sale and consumption off the premises at temporary locations for fund raising and other special events, and such sale in such other ways as Franchisor may specify from time to time, all of which may be changed, improved, and further developed by Franchisor from time to time (the "System").
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 36–39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, in addition to the employee's position, the consideration for the Confidentiality and Non-Competition Agreement is one dollar. This agreement is required to be executed by the franchisee's managers and other personnel who have access to Beggars Pizza's confidential information.
The agreement outlines that Beggars Pizza has developed a distinctive system through time, skill, effort, and money, relating to the establishment, operation, and promotion of Beggars Pizza restaurants. This system includes offering pizza and other food products, as well as alcoholic and non-alcoholic beverages, for sale and consumption on the premises, carry-out, delivery, catering, and at temporary locations for fundraising and special events.
The employee, in their position, will receive valuable confidential information, which includes the manual, recipes, ingredients, cooking procedures, customer lists, drawings, materials, or equipment related to the establishment and operation of Beggars Pizza restaurants. The employee agrees to hold all information designated as confidential in strict confidence and will only use or disclose it in connection with their duties as an employee of the franchisee. This obligation continues even after the employee ceases to be in that position. Beggars Pizza is a third-party beneficiary of the agreement and can enforce it jointly or solely with the franchisee.