What were the deferred franchise fees for Beggars Pizza in 2022?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company's revenue mainly consists of franchise fees and royalties. The Company sells individual franchisees the right to operate a Beggars Pizza location within a defined territory using the franchise brand name.
Initial franchise fees are $25,000 for a restaurant with 150 or fewer seats and $40,000 for a restaurant with more than 150 seats. The Company offers a 50 percent franchise fee discount to a franchisee that opens a second store. This fee is due and nonrefundable upon signing the franchise agreement. The initial nonrefundable franchise fees, which are collected in advance, are recognized as revenue at a point in time franchisee opens their location, or upon termination of such agreement. At the expiration of a franchise agreement, a renewal fee ranging from 10 to 33 percent of the initial franchise fee is due and recognized at a point in time when services related to the renewal agreement are completed. For the yea
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, the initial franchise fees deferred totaled $37,500 as of December 31, 2022. These are fees that Beggars Pizza has collected but not yet recognized as revenue.
The initial franchise fee for a Beggars Pizza restaurant is $25,000 for a location with 150 or fewer seats and $40,000 for a location with more than 150 seats. Beggars Pizza offers a 50% discount on the franchise fee for franchisees opening a second store. These fees are nonrefundable and due upon signing the franchise agreement.
Beggars Pizza recognizes these initial franchise fees as revenue when the franchisee opens their location or if the franchise agreement is terminated. The deferred revenue balance reflects fees received for which Beggars Pizza has not yet fulfilled its obligations, such as opening the new location. This deferred revenue will likely be recognized in future periods as the company fulfills its obligations to new franchisees.