factual

What criteria must suppliers meet to be approved by Beggars Pizza?

Beggars_Pizza Franchise · 2025 FDD

Answer from 2025 FDD Document

S AND SERVICES**

All products sold or offered for sale at the Restaurant and other materials, supplies, paper goods, fixtures, furnishings, and equipment used or sold at the Restaurant must meet our standards and specifications as established in the Manuals or otherwise in writing. You must purchase all food items, ingredients, supplies, materials, other products, and equipment used or offered for sale at the Restaurant for which we have established standards or specifications solely from suppliers (including manufacturers, distributors, and other sources) that demonstrate the ability to meet our

standards and specifications, who possess adequate quality controls and capacity to supply your needs promptly and reliably, and who have been approved by us. If you desire to purchase products from a party other than an approved supplier, you must submit a written request to us to approve the proposed supplier with evidence of conformity with our specifications as we may require. You must pay the costs of our evaluation and testing of the proposed supplier. We will use our best efforts to notify you of our approval or disapproval of the proposed supplier within 30 days after our receipt of your request. Our approval will not be unreasonably withheld. If you do not receive our decision within this 30-day period, the supplier will be deemed unapproved. You may not sell or offer for sale any products of the proposed supplier until you receive our written approval of the supplier. We may revoke our approval of particular products or suppliers at any time we determine that such products or suppliers no longer meet our standards in our sole discretion.

You must purchase all spaghetti sauces, pizza sauce spices, cheeses, sausages, pizza dough, spice blends, and paper products used at the Restaurant from us, an affiliate, or a supplier we designate or approve. We have developed certain proprietary, confidential, and trade secret recipes that are part of the System including pizza dough, spaghetti and pizza sauces, sausage, and secret spice blends. We may develop additional trade secret food ingredients.

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 15–18)

What This Means (2025 FDD)

According to Beggars Pizza's 2025 Franchise Disclosure Document, suppliers must meet specific criteria to gain approval. These suppliers must demonstrate the ability to meet Beggars Pizza's standards and specifications, possess adequate quality controls, and have the capacity to supply the franchisee's needs promptly and reliably. These standards and specifications are established in Beggars Pizza's manuals or in writing.

If a franchisee wishes to purchase products from a supplier not already approved, they must submit a written request to Beggars Pizza for approval. This request must include evidence that the proposed supplier conforms to Beggars Pizza's specifications. The franchisee is responsible for covering the costs associated with the evaluation and testing of the proposed supplier. Beggars Pizza will then use its best efforts to notify the franchisee of its decision within 30 days of receiving the request; otherwise, the supplier is deemed unapproved.

Beggars Pizza's approval of a supplier is not permanent. Beggars Pizza retains the right to revoke its approval of particular products or suppliers at any time if it determines that they no longer meet the company's standards. This decision is made at Beggars Pizza's sole discretion. Franchisees are prohibited from selling or offering for sale any products from a proposed supplier until they receive written approval from Beggars Pizza.

These restrictions are typical in franchising to maintain quality control and brand consistency. Beggars Pizza estimates that 95% of a franchisee's expenditures for leases and purchases, both in establishing the restaurant and on an ongoing basis, will be subject to these sourcing restrictions. This high percentage underscores the importance of supplier approval in the Beggars Pizza franchise system.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.