What is the consideration for the renewal franchise rights granted to a Beggars Pizza franchisee?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
that Franchisee has no right to further renew the Franchise Agreement after the term of the Franchise Agreement.
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- Section 3.1, Section 3.3, and Section 3.4 of the Franchise Agreement are hereby deleted in their entirety.
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- Section 4.1 of the Franchise Agreement is hereby deleted in its entirety and replaced with the following:
- 4.1 Renewal Fee. In consideration of the renewal franchise rights granted herein, Franchisee will pay a renewal fee to Franchisor of ($ ) upon execut
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, a franchisee must pay a renewal fee to the Franchisor in consideration for the renewal franchise rights granted. The amount of the renewal fee is left blank in the franchise agreement, represented by ($ ) upon execution of the agreement.
The agreement specifies that the entire renewal franchise fee is fully earned and non-refundable. This non-refundable status is in consideration of administrative and other expenses incurred by Beggars Pizza in granting the renewal franchise. It also accounts for Beggars Pizza's lost or deferred opportunity to enter into a franchise agreement with other potential franchisees.
Prospective franchisees should note the blank amount and inquire with Beggars Pizza about the specific renewal fee applicable at the time of renewal. Understanding this fee is crucial for financial planning and assessing the long-term viability of the franchise investment. The non-refundable nature of the fee also warrants careful consideration of the renewal terms and conditions before proceeding.