What criteria must suppliers meet to be designated as approved suppliers for a Beggars Pizza franchise?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
All products sold or offered for sale at the Restaurant, and other products, materials, supplies, paper goods, fixtures, furnishings, and equipment used or sold at the Restaurant, must meet Franchisor's then-current standards and specifications, as established in the Manual or otherwise in writing.
Except as provided in Section 7.3 and Section 7.4.3, Franchisee must purchase all food items, ingredients, supplies, materials, and other products and equipment used or offered for sale at the Restaurant for which Franchisor has established standards or specifications solely from Franchisor, an affiliate of Franchisor, or suppliers (including manufacturers, distributors, and other sources) designated by Franchisor that demonstrate to the continuing reasonable satisfaction of Franchisor the ability to meet Franchisor's standards and specifications, who possess adequate quality controls and capacity to supply Franchisee's needs promptly and reliably, and who have been approved by Franchisor in the Manual or otherwise in writing.
Franchisor may require Franchisee to purchase any approved products, equipment, and merchandise solely from Franchisor or an affiliate of Franchisor.
If Franchisee desires to purchase products from a party other than an approved supplier, Franchisee must submit to Franchisor a written request to approve the proposed supplier, together with such evidence of conformity with Franchisor's specifications as Franchisor may reasonably require.
Franchisor may require that its representatives be permitted to inspect the supplier's facilities and that samples from the supplier be delivered for evaluation and testing either to Franchisor or an independent testing facility designated by Franchisor.
Franchisee must pay a charge not to exceed the cost of the evaluation and testing.
Franchisor must use its best efforts to notify Franchisee in writing of its approval or disapproval of the proposed supplier within thirty days after the completion of such evaluation and testing.
Franchisee must not sell or offer for sale any products of the proposed supplier until Franchisor's written approval of the proposed supplier is received.
Franchisor may from time to time revoke its approval of particular products or suppliers when Franchisor determines, in its sole discretion, that such products or suppliers no longer meet Franchisor's standards.
Upon receipt of written notice of such revocation, Franchisee must cease to sell any disapproved products and cease to purchase from any disapproved supplier.
Franchisee must use products purchased from approved suppliers solely for the purpose of operating the Restaurant and not for any other purpose including, without limitation, resale.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, suppliers must demonstrate to the franchisor's satisfaction their ability to meet Beggars Pizza's standards and specifications. These suppliers must also possess adequate quality controls and the capacity to promptly and reliably supply the franchisee's needs. The franchisor approves these suppliers either in the Manual or in writing.
If a franchisee wants to use a supplier that isn't already approved, they must submit a written request to Beggars Pizza for approval. The franchisee must also provide evidence that the proposed supplier meets Beggars Pizza's standards. Beggars Pizza may require an inspection of the supplier's facilities and samples for evaluation, with the franchisee covering the costs of these evaluations and tests. Beggars Pizza will then notify the franchisee of their decision within 30 days after completing the evaluation.
Beggars Pizza retains the right to revoke approval of suppliers or products if they no longer meet the franchisor's standards. Franchisees must then cease purchasing from that supplier or selling the disapproved product upon receiving written notice. Franchisees are also obligated to buy exclusively from Beggars Pizza or its affiliates if required. The franchisee can only use products purchased from approved suppliers for operating the Beggars Pizza restaurant and not for any other purpose, including resale.