What constitutes the early termination fee for the Beggars Pizza agreement?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Quote.
- b. Either party may terminate this Agreement (i) if the other party materially breaches this Agreement and such breach has not been cured within thirty (30) days of notice of such breach; or (ii) if the other party becomes the subject of a petition in bankruptcy or any other proceeding relating to insolvency, receivership, liquidation or assignment for the benefit of creditors and in the case of any such involuntary proceeding it remains undismissed thirty (30) days after filing. Any termination by Customer (other than for SpeedLine's uncured material breach of this Agreement as set forth in this Section 11.b or pursuant to Section 15) and any termination by SpeedLine for Customer's breach, prior to the end of the Initial Term or, as applicable, the current Renewal Term, will subject Customer to an early termination (acceleration) fee by way of liquidated damages and not as a penalty for lost Subscription Fee revenue to SpeedLine for the remainder of the Initial Term or Renewal Term, as the case may be.
Source: Item 23 — RECEIPT (FDD pages 39–192)
What This Means (2025 FDD)
According to the 2025 Beggars Pizza Franchise Disclosure Document, the early termination fee for specific agreements is detailed within the context of service agreements with SpeedLine. If a customer terminates the agreement before the end of the initial term or any renewal term, or if SpeedLine terminates due to the customer's breach, the customer will be subject to an early termination fee. This fee is considered liquidated damages and not a penalty.
The early termination fee is calculated as the sum of all subscription fees that would have been due for the remainder of the current contract term, whether it's the initial term or a renewal term. Additionally, any other outstanding fees or amounts owed, such as those for professional services, will be included in the early termination fee.
For prospective Beggars Pizza franchisees, this means that prematurely ending a service agreement can result in significant costs, potentially covering the entire remaining duration of the agreement plus any outstanding charges. Franchisees should carefully consider the terms and length of service agreements and their ability to fulfill them to avoid incurring these fees. It's also important to note that SpeedLine has the discretion to suspend a customer's service if a material breach of the agreement occurs and is not resolved within five business days of notification.