What is the definition of 'Price' in relation to product purchases for my Beggars Pizza franchise?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
The current purchase price (the "Price") for each Product charged by Supplier and paid by Franchisee as of the Agreement Date is set forth in Exhibit A.
Supplier may make reasonable adjustments in the Prices upon notice to Franchisee from time to time in writing or in the Manual; provided, however, that Supplier will have no such obligation for such products sold hereunder (as determined by Supplier) for which there are frequent wholesale price fluctuations.
Said Prices will include all applicable federal, state, and local taxes and transportation fees.
Source: Item 23 — RECEIPT (FDD pages 39–192)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, the "Price" refers to the purchase price for each product that the designated supplier charges the franchisee. The current prices as of the agreement date are detailed in Exhibit A of the agreement.
The supplier has the ability to make reasonable adjustments to these prices, and will notify the franchisee in writing or through updates to the manual. However, this obligation to provide notice does not apply to products with frequent wholesale price fluctuations, as determined by the supplier. The prices quoted will include all applicable federal, state, and local taxes, as well as transportation fees.
As a Beggars Pizza franchisee, it's important to regularly review Exhibit A and any updates from the supplier to stay informed about product costs. Understanding the terms for price adjustments and what the price includes (taxes, transportation) is crucial for managing your restaurant's expenses and profitability. You should also clarify with Beggars Pizza and the supplier how they define "frequent wholesale price fluctuations" to understand the potential for unannounced price changes on certain products.