What is the current status of purchasing or distribution cooperatives for Beggars Pizza?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
We negotiate purchase arrangements with some or all of our approved or designated suppliers and we may receive money or other benefits from approved or designated suppliers as a result of your purchases. As of the date of this disclosure document, there are no purchasing or distribution cooperatives. We do not provide material benefits to you based on your purchase of particular products or services or your use of designated or approved suppliers, other than the benefit of our negotiated pricing, but we may terminate your Franchise Agreement if you purchase from unapproved sources in violation of your Franchise Agreement.
We estimate that 95% of your expenditures for leases and purchases in establishing the Restaurant and on an ongoing basis will be for goods and services that are subject to sourcing restrictions (that is, for which suppliers must be approved by us or which must meet our standards or specifications).
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, as of the date of the document, there are no purchasing or distribution cooperatives in place. However, Beggars Pizza does negotiate purchase arrangements with its approved or designated suppliers and may receive money or other benefits as a result of franchisee purchases from these suppliers.
While there are no cooperatives, Beggars Pizza estimates that 95% of a franchisee's expenditures for leases and purchases, both when establishing the restaurant and on an ongoing basis, will be for goods and services subject to sourcing restrictions. This means franchisees will likely need to buy from approved suppliers or meet specific standards set by Beggars Pizza.
Although Beggars Pizza does not currently offer material benefits to franchisees based on their use of designated or approved suppliers beyond potentially negotiated pricing, franchisees risk termination of their Franchise Agreement if they purchase from unapproved sources. This highlights the importance of adhering to Beggars Pizza's sourcing requirements to maintain the franchise agreement.