For Beggars Pizza, what is the customer's responsibility regarding the equipment and software meeting the Licensor's required specifications and standards?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
APPROVED SUPPLIER: If the Licensor of the Customer requires that the Customer must purchase, receive or acquire equipment and software that meets the Licensor's required specifications and standards and which is acquired from an approved supplier, the Customer is responsible for ensuring that the equipment and software described in the Quote meet the required specifications and standards, and for having SpeedLine approved as a supplier of the equipment and software described in the Quote.
Source: Item 23 — RECEIPT (FDD pages 39–192)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, if the licensor requires that the customer must purchase, receive, or acquire equipment and software that meets the licensor's required specifications and standards from an approved supplier, the customer is responsible for ensuring that the equipment and software described in the quote meet the required specifications and standards. Additionally, the customer is responsible for having SpeedLine approved as a supplier of the equipment and software described in the quote. This means that Beggars Pizza franchisees must verify that any equipment and software they obtain from approved suppliers aligns with the licensor's standards.
This requirement places a due diligence obligation on the franchisee to confirm compliance. It is not enough to simply purchase from an 'approved supplier'; the franchisee must actively ensure the products meet the required specifications. This could involve reviewing product documentation, seeking confirmation from the supplier, or even engaging a third-party expert to verify compliance. The franchisee bears the risk of non-compliance if the equipment or software fails to meet the licensor's standards.
Furthermore, the franchisee must ensure that SpeedLine is an approved supplier if they are sourcing equipment and software from them. This implies an additional step of verifying SpeedLine's approved status with the licensor. Overall, this stipulation highlights the importance of careful procurement and verification processes for Beggars Pizza franchisees to avoid potential issues with compliance and operational standards.