What is the definition of 'Franchise Agreement' in relation to the Beggars Pizza franchise?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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 Beggars Pizza® restaurants under the System, and (b) is, or is intended to be, located at or within (i) Franchisee's Territory as defined in Franchisee's franchise agreement with Franchisor (the "Franchise Agreement"), the boundaries of which I acknowledge have been described to me, (ii) a radius of ten (10) miles from the premises of Franchisee's Beggars Pizza® restaurant, or (iii) a radius of ten (10) miles of any business operating under Franchisor's marks.
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- Franchisor is a third-party beneficiary of the Agreement and may enforce it solely and/or jointly with Franchisee. I am aware that my violation of the Agreement will cause Franchisor and Franchisee irreparable harm. I acknowledge and agree that Franchisor and/or Franchisee may apply for the issuance of an injunction preventing me from violating the Agreement in addition to any other remedies they may have at law or in equity. I will pay Franchisor and Franchisee all costs incurred including, without limitation, attorneys' fees, if the Agreement is enforced against me. Due to the importance of the Agreement to Franchisor and Franchisee, any claim I have against Franchisor or Franchisee is a separate matter and does not entitle me to violate, or justify any violation of, the Agreement. If any part of the Agreement is held invalid by a court or agency having valid jurisdiction, the rest of the Agreement is still enforceable, and the part held invalid is enforceable to the extent found reasonable by the court or agency. I agree that all the words and phrases used in the Agreement will have the same meaning as used in the Franchise Agreement and that such meanings have been explained to me.
Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 36–39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, the term 'Franchise Agreement' is referenced within the context of defining a franchisee's territory. Specifically, it relates to the agreement between the franchisee and Beggars Pizza Franchisor, LLC, which outlines the boundaries of the franchisee's exclusive area. This definition appears in the Confidentiality and Non-Competition Agreement that Beggars Pizza requires its franchisees' managers and other personnel to sign.
This agreement states that employees are restricted from engaging in any business that offers similar food items to Beggars Pizza within the franchisee's territory, as defined in the Franchise Agreement. The agreement also restricts them from operating within a 10-mile radius of the franchisee's Beggars Pizza restaurant or any business operating under Beggars Pizza's marks. This clause protects the franchisee's market area and prevents direct competition from businesses associated with the employee.
The agreement also stipulates that all terms used within the Confidentiality and Non-Competition Agreement will have the same meaning as in the Franchise Agreement. This ensures consistency and clarity in interpreting the obligations of the employee. Beggars Pizza is a third-party beneficiary of the Confidentiality and Non-Competition Agreement and can enforce it against the franchisee's employees, either independently or jointly with the franchisee. This highlights the importance Beggars Pizza places on protecting its brand and franchise network from potential harm caused by employee actions.