What constitutes a default under the Beggars Pizza Site Selection Addendum?
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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- Franchisor will not establish, nor franchise another to establish, a Beggars Pizza® restaurant within the Site Selection Territory until Franchisor approves a location for the Restaurant or until the time set forth in Paragraph 1 expires, whichever event first occurs.
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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, failure to obtain premises for the restaurant within the required timeframe outlined in Paragraph 1 of 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 matter.
Specifically, if a location for the Beggars Pizza restaurant has not been secured and approved by Beggars Pizza at the time of the Franchise Agreement's execution, the franchisee is required to lease or acquire a location within ninety (90) days from the date of the agreement. This acquisition is contingent upon Beggars Pizza's approval, as detailed in the Site Selection Addendum.
This stipulation means that a prospective Beggars Pizza franchisee must diligently work to find and secure a suitable location within the specified timeframe. Failure to do so can result in a default, potentially leading to termination of the franchise agreement. Franchisees should therefore prioritize site selection and maintain open communication with Beggars Pizza to ensure compliance with the addendum's requirements.