Can Beggars Pizza designate a geographical area for a regional advertising cooperative?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12.10 Advertising Cooperative.
Franchisor may designate any geographical area for the purposes of establishing a regional advertising and promotional cooperative ("Cooperative") and determine whether a Cooperative is applicable to the Restaurant in Franchisor's discretion.
If a Cooperative has been established applicable to the Restaurant at the time Franchisee commences operations, Franchisee must immediately become a member of the Cooperative.
If a Cooperative applicable to the Restaurant is established at any later time during the term of the Agreement, Franchisee must become a member of such Cooperative no later than thirty (30) days after the date on which the Cooperative commences operation.
If the Restaurant is within the territory of more than one Cooperative, Franchisee will be required to be a member of only one Cooperative:
- 12.10.1 Each Cooperative will be organized and governed in a form and manner, will commence operation on a date approved by Franchisor, and will operate pursuant to written governing documents, all of which must be approved in advance by Franchisor in writing.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, Beggars Pizza has the authority to designate geographical areas for regional advertising and promotional cooperatives. Beggars Pizza also has the discretion to determine whether a cooperative is applicable to a specific restaurant.
If a cooperative is already in place when a Beggars Pizza franchise begins operations, the franchisee must immediately join the cooperative. If a cooperative is established later during the franchise agreement term, the franchisee is required to become a member within 30 days of the cooperative's commencement.
If a Beggars Pizza restaurant falls within the territory of multiple cooperatives, the franchisee is only obligated to be a member of one. Each cooperative's organization, governance, operational start date, and governing documents must be approved in advance and in writing by Beggars Pizza.