What constitutes the Approved Location referred to in Section 1.2 of the Beggars Pizza Franchise Agreement?

According to Beggars Pizza's 2025 Franchise Disclosure Document, the Approved Location, as referenced in Section 1.2 of the Franchise Agreement, is defined as a site for the Restaurant that has been approved in writing by Beggars Pizza and obtained by the franchisee, as outlined in Paragraph 4 of the agreement. This location is initially identified in Exhibit A of the Franchise Agreement. If a location hasn't been secured when the agreement is signed, the franchisee has 90 days to find and lease or acquire a site, subject to Beggars Pizza's approval, detailed in Exhibit B, the Site Selection Addendum. The franchisee must furnish Beggars Pizza with a copy of any executed lease within ten days after execution.

Beggars Pizza's approval of a site doesn't constitute a guarantee of its suitability or potential for success. The approval only indicates that Beggars Pizza believes the site meets its minimum criteria at the time of evaluation. Factors like competition or economic changes can affect a site's potential after approval, and Beggars Pizza isn't responsible if the site doesn't meet the franchisee's expectations regarding revenue or operational criteria. The franchisee is expected to conduct their own independent investigation to determine the suitability of the site.

The franchisee cannot relocate the Beggars Pizza restaurant without prior written approval from Beggars Pizza, which Beggars Pizza may withhold at its discretion. The Site Selection Addendum is an integral part of the Franchise Agreement, and its terms are controlling regarding site selection. The franchisee's failure to secure premises within the specified timeframe constitutes a default under the agreement. Beggars Pizza will not establish, nor franchise another to establish, a Beggars Pizza restaurant within the Site Selection Territory until Beggars Pizza approves a location for the Restaurant or until the time set forth in Paragraph 1 expires, whichever event first occurs.

Prior to acquiring a site, the franchisee must submit a completed site review form, other required information, and evidence of favorable prospects for obtaining the proposed site to Beggars Pizza. This submission must occur within 60 days of executing the Site Selection Addendum. Beggars Pizza then has 30 days to approve or disapprove the site in its sole discretion, with approval only valid if expressly provided in writing. Beggars Pizza will furnish site selection guidelines and consultation, as well as on-site evaluation if deemed advisable, though on-site evaluations are limited and may require reimbursement from the franchisee for additional evaluations.