What is the definition of 'supplier or suppliers designated or approved by Franchisor' for a Beggars Pizza franchise?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
To ensure that the highest degree of quality and service is maintained, Franchisee must operate the Restaurant in strict conformity with such methods, standards, and specifications as Franchisor may from time to time prescribe in the Manual or otherwise in writing.
Franchisee must:
- 7.4.1 Maintain in sufficient supply as Franchisor may prescribe in the Manual or otherwise in writing, and to use at all times, only such products and ingredients acquired from a supplier or suppliers designated or approved by Franchisor, and such other ingredients, products, materials, supplies, paper goods, fixtures, furnishings, equipment, signs and menu items, as conform with Franchisor's standards and specifications, and to refrain from deviating therefrom by the use of nonconforming items, without Franchisor's prior written consent.
Franchisor may designate itself or an affiliate to be an approved supplier, or the only approved supplier, of any products or other items;
- 7.4.2 Sell or offer for sale only such menu items, and other products and services as have been expressly approved for sale in writing by Franchisor; to sell or offer for sale all types of menu items, and other products and services specified by Franchisor; to refrain from any deviation from Franchisor's standards and specifications without Franchisor's prior written consent; and to discontinue selling and offering for sale any menu items, or other products or services which Franchisor may, in its discretion, disapprove in writing at any time.
Any time Franchisor notifies Franchisee that an item will become an approved product, or that an item will no longer be an approved product, Franchisor will include a deadline by which Franchisee must offer such approved product for sale, or must cease selling the item that is no longer an approved product.
The deadline will be at least ninety (90) days after Franchisor gives Franchisee the notice, in the case of a new approved product, and at least thirty (30) days after Franchisor gives Franchisee the notice, in the case of a product that is no longer an approved product; and
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, a 'supplier or suppliers designated or approved by Franchisor' refers to entities that meet specific criteria set by Beggars Pizza. These suppliers must demonstrate, to the continuing reasonable satisfaction of Beggars Pizza, their ability to meet the franchisor's standards and specifications. This includes having adequate quality controls and the capacity to promptly and reliably supply the franchisee's needs. These suppliers are formally approved by Beggars Pizza either in the Manual or in writing.
Beggars Pizza may also designate itself or an affiliate to be an approved supplier, or even the only approved supplier, for certain products or other items. Franchisees are required to acquire products and ingredients exclusively from these designated or approved suppliers and to use only those items that conform to Beggars Pizza's standards and specifications. Deviation from this requirement is not permitted without prior written consent from Beggars Pizza.
This system ensures that all Beggars Pizza restaurants maintain a consistent level of quality and service. Franchisees must maintain a sufficient supply of products acquired from these approved suppliers. Beggars Pizza retains the right to change approved products, providing franchisees with at least 90 days' notice for new products and 30 days' notice for discontinued products. This allows franchisees time to adjust their inventory and offerings accordingly.