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What is the dependency for a reduced initial franchise fee for a second Beggars Pizza location?

Beggars_Pizza Franchise · 2025 FDD

Answer from 2025 FDD Document

If you open a second Beggars Pizza® Restaurant with an identical ownership group with each owner having identical ownership interests, we will reduce the initial franchise fee by 50%.

Source: Item 5 — INITIAL FEES (FDD pages 8–9)

What This Means (2025 FDD)

According to Beggars Pizza's 2025 Franchise Disclosure Document, a franchisee may be eligible for a reduced initial franchise fee when opening a second location. Specifically, if the second Beggars Pizza restaurant is opened with an identical ownership group, where each owner maintains the same ownership interests as in the first location, the initial franchise fee will be reduced by 50%.

This represents a significant potential cost savings for existing Beggars Pizza franchisees looking to expand. The initial franchise fee for a Beggars Pizza restaurant is $25,000 for locations with 150 or fewer seats and $40,000 for restaurants with more than 150 seats. Therefore, the discount would be $12,500 or $20,000, respectively. This reduction in the initial investment can make opening a second location more financially feasible.

It is important to note that the ownership structure must remain identical for the discount to apply. Any changes in ownership percentages among the owners could disqualify the franchisee from receiving the reduced fee. Prospective franchisees should carefully consider this requirement when planning to expand their Beggars Pizza business.

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.