factual

What is the definition of 'approved supplier' for a Beggars Pizza franchise?

Beggars_Pizza Franchise · 2025 FDD

Answer from 2025 FDD Document

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.

Source: Item 22 — CONTRACTS (FDD page 39)

What This Means (2025 FDD)

According to Beggars Pizza's 2025 Franchise Disclosure Document, an approved supplier is defined as a supplier (including manufacturers, distributors, and other sources) designated by Beggars Pizza that demonstrates the ability to meet the franchisor's standards and specifications to the continuing reasonable satisfaction of Beggars Pizza. These suppliers must also possess adequate quality controls and the capacity to supply a franchisee's needs promptly and reliably. The approval of these suppliers is documented in the manual or otherwise provided in writing by Beggars Pizza.

This means that as a franchisee, you are generally required to purchase food items, ingredients, supplies, materials, and equipment from Beggars Pizza, its affiliates, or these approved suppliers, especially for items for which Beggars Pizza has established specific standards or specifications. Beggars Pizza retains the right to require franchisees to purchase certain approved products, equipment, and merchandise solely from them or their affiliates.

This requirement ensures uniformity and quality across all Beggars Pizza locations, protecting the brand's reputation. However, it also limits a franchisee's ability to negotiate prices or source products independently, which could potentially affect profitability. It is important for prospective franchisees to understand these requirements and evaluate the approved supplier network during their due diligence.

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.