Can Beggars Pizza disapprove a transfer if the consideration offered by the transferee is excessive?

According to Beggars Pizza's 2025 Franchise Disclosure Document, Beggars Pizza will not unreasonably withhold consent to a transfer of a franchise. However, Beggars Pizza may require certain conditions to be met before approving a transfer.

One of these conditions is that "the consideration or payment terms offered by a proposed transferee are not excessive or unreasonable, based on the gross revenues of the Restaurant and sale prices of other Beggars Pizza® restaurants in the System in Franchisor's reasonable business judgment". This means that Beggars Pizza can disapprove a transfer if they believe the price being offered is too high, based on their assessment of the restaurant's financial performance and comparable sales within the Beggars Pizza system.

This provision protects both Beggars Pizza and potential transferees. By ensuring that the purchase price is reasonable, Beggars Pizza maintains the financial stability of its franchise system. It also prevents franchisees from overpaying for a business, which could lead to financial difficulties and harm the Beggars Pizza brand. Prospective franchisees should carefully consider this factor when negotiating the purchase of an existing Beggars Pizza franchise.