Who has discretion over the advertising programs for Beggars Pizza?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
We or our affiliates direct all advertising, marketing, and promotional programs and have sole discretion over all aspects of those programs including the concepts, materials, and media used and their placement and allocation. (Franchise Agreement, Section 12.5.1.) The Brand Fund, all contributions to it, and any of its earnings are used exclusively to meet the costs of maintaining, administering, directing, conducting, and preparing advertising, marketing, public relations, and/or promotional programs and materials, and any other activities which we believe will enhance the
image of the System including the costs of preparing and conducting radio, television, print, and Internet-based advertising campaigns, utilizing social and business networking media sites and other emerging media or promotional tactics, developing, maintaining, and updating webpages on the Internet, reviewing locally-produced advertisements, creating door hangers, mailers, inserts, coupons, brochures, and promotional materials, market research, market surveys, sponsorships, website design and maintenance, public relations and related retainers, mystery shoppers for the System and competitors, celebrity endorsements, trade shows (including costs of travel and personnel expenses, trade booths, and specialty entertainment), association dues, search engine optimization, employing advertising and/or public relations agencies, purchasing promotional items, menu development, providing promotional and other marketing materials and services to businesses operating under the System, developing posters, banners, and signs, and advertising the sale of franchises. (Franchise Agreement, Section 12.5.2.) Media coverage for advertising expenditures will be local and regional.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 19–26)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, Beggars Pizza or its affiliates have sole discretion over all advertising, marketing, and promotional programs. This includes the concepts, materials, media used, and their placement and allocation. The Brand Fund, which franchisees contribute to, is used exclusively for advertising, marketing, public relations, and promotional programs. These programs aim to enhance the image of the Beggars Pizza system through various means such as radio, television, print, and internet-based advertising campaigns.
Beggars Pizza also directs how franchisees spend money on local advertising. Franchisees must spend at least $10,000 on an initial grand opening local advertising, marketing, and promotional program within 30 days after opening their restaurant. During the first three months of operation, franchisees must spend at least $3,000 per month on local marketing, advertising, and promotion, in addition to the grand opening program. After this initial period, franchisees are required to spend 2% of gross sales monthly on local marketing, advertising, and promotion as directed by Beggars Pizza in the manuals or in writing.
While franchisees are required to contribute to advertising, they must get approval from Beggars Pizza on any advertising and promotional plans and materials for any print, broadcast, cable, electronic, computer, or other media. If written notice of approval is not received within 15 days of Beggars Pizza receiving the samples or materials, the plans are considered disapproved. This ensures that all advertising aligns with the brand's standards and requirements. Beggars Pizza also has the power to require any Cooperative to be formed, changed, dissolved, or merged. There is no advertising council composed of franchisees that advises Beggars Pizza on advertising policies.