factual

From what date does the two-year post-term covenant period begin for a Beggars Pizza franchise?

Beggars_Pizza Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 17.3 Post-Term Covenants. Franchisee covenants that, except as otherwise approved in writing by Franchisor, Franchisee will not, for a continuous uninterrupted period of two (2) years commencing upon the date of (a) a transfer permitted under Section 14, (b) expiration of the Agreement, (c) termination of the Agreement regardless of the cause for termination, (d) a final order of a duly authorized arbitrator, panel of arbitrators, or a court of competent jurisdiction (after all appeals have been taken) with respect to any of the foregoing or with respect to enforcement of this Section 17.3, or (e) any or all of the foregoing, either directly or indirectly for itself, or through, on behalf of, or in conjunction with any person or legal entity, own, maintain, operate, engage in, be employed by, provide assistance to, or have any interest in (as owner or otherwise) any business that (a) offers or sells pizza, pizza products, Italian-style food, or other food items that are the same as or similar to the products being offered by the Restaurant under the System, and (b) is, or is intended to be, located at or within:
    • 17.3.1 Franchisee's Territory;
    • 17.3.2 Ten (10) miles of the Approved Location; or
    • 17.3.3 Ten (10) miles of any business operating under the Proprietary Marks;

provided, however, that Section 17.2.2 and Section 17.3 will not apply to the operation by Franchisee of any business under the System that is franchised by Franchisor to Franchisee under a written franchise agreement.

Source: Item 22 — CONTRACTS (FDD page 39)

What This Means (2025 FDD)

According to Beggars Pizza's 2025 Franchise Disclosure Document, the two-year post-term covenant period begins on the date of several events. These events include (a) a transfer permitted under Section 14, (b) the expiration of the Franchise Agreement, (c) the termination of the Franchise Agreement regardless of the cause for termination, or (d) a final order of a duly authorized arbitrator, panel of arbitrators, or a court of competent jurisdiction (after all appeals have been taken) with respect to any of the foregoing or with respect to enforcement of this Section 17.3, or (e) any or all of the foregoing.

During this two-year period, unless otherwise approved in writing by Beggars Pizza, the franchisee is restricted from engaging in any business that offers or sells pizza, pizza products, Italian-style food, or other similar food items. This restriction applies if the business is owned, maintained, operated, or if the franchisee is employed by, provides assistance to, or has any interest in such a business.

The geographic scope of this restriction includes (a) the franchisee's territory, (b) within ten miles of the approved location of the Beggars Pizza restaurant, or (c) within ten miles of any other business operating under Beggars Pizza's proprietary marks. However, these restrictions do not apply if the franchisee operates another Beggars Pizza franchise under a written agreement with the company.

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.