Are the contributions to the Beggars Pizza Brand Fund used exclusively to enhance the image of the system?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
The Brand Fund, all contributions to it, and any of its earnings are used exclusively to meet the costs of maintaining, administering, directing, conducting, and preparing advertising, marketing, public relations, and/or promotional programs and materials, and any other activities which we believe will enhance the
image of the System including the costs of preparing and conducting radio, television, print, and Internet-based advertising campaigns, utilizing social and business networking media sites and other emerging media or promotional tactics, developing, maintaining, and updating webpages on the Internet, reviewing locally-produced advertisements, creating door hangers, mailers, inserts, coupons, brochures, and promotional materials, market research, market surveys, sponsorships, website design and maintenance, public relations and related retainers, mystery shoppers for the System and competitors, celebrity endorsements, trade shows (including costs of travel and personnel expenses, trade booths, and specialty entertainment), association dues, search engine optimization, employing advertising and/or public relations agencies, purchasing promotional items, menu development, providing promotional and other marketing materials and services to businesses operating under the System, developing posters, banners, and signs, and advertising the sale of franchises. (Franchise Agreement, Section 12.5.2.) Media coverage for advertising expenditures will be local and regional.
During our most recent fiscal year, 57% of Brand Fund expenditures were spent on media placement, team sponsorships, and donations; 33% on production, and 10% on administrative and related expenses. No Brand Fund fees were used for the solicitation of new franchise sales. We conduct advertising using third-party advertising agencies and in-house marketing personnel. We do not anticipate any Brand Fund expenditures will be principally used to solicit new franchise sales.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 19–26)
What This Means (2025 FDD)
According to the 2025 Beggars Pizza Franchise Disclosure Document, contributions to the Brand Fund are primarily used to enhance the image of the Beggars Pizza system. The FDD specifies that the Brand Fund, including all contributions and earnings, is exclusively dedicated to covering the costs of maintaining, administering, directing, and preparing advertising, marketing, public relations, and promotional programs. These activities aim to enhance the image of the Beggars Pizza system.
The Brand Fund is used for various advertising and promotional activities, including radio, television, print, and Internet-based advertising campaigns, social media marketing, website development and maintenance, local advertisement reviews, and the creation of promotional materials. It also covers market research, sponsorships, public relations, mystery shoppers, celebrity endorsements, trade shows, association dues, search engine optimization, advertising agency fees, promotional items, menu development, and the development of posters, banners, and signs.
During the most recent fiscal year, 57% of Brand Fund expenditures were allocated to media placement, team sponsorships, and donations, while 33% was spent on production, and 10% covered administrative and related expenses. Importantly, the FDD states that no Brand Fund fees were used for the solicitation of new franchise sales, and Beggars Pizza does not anticipate that any Brand Fund expenditures will be principally used for this purpose. A reasonable amount of the Brand Fund fees paid by all franchisees may be used to cover Beggars Pizza's or its affiliate's costs and overhead as may be incurred from activities reasonably related to the direction and implementation of the Brand Fund and advertising programs for franchisees and the System including costs and salaries of personnel for creating and implementing advertising, promotional, and marketing programs, accounting expenses, and other out-of-pocket expenses paid to third parties.