What documents might Beggars Pizza require the transferee to execute upon transfer?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor may require any or all of the following as conditions of its approval in its sole discretion:
14.3.4 That the transferor executes a general release, in a form satisfactory to Franchisor, of any claims against Franchisor and its affiliates, and their respective officers, directors, agents, shareholders, and employees;
14.3.5 That (a) (i) the transferee (and if the transferee is other than an individual, such owners of a beneficial interest in the transferee as Franchisor may request) enters into a written assignment, in a form satisfactory to Franchisor, assuming and agreeing to discharge all of Franchisee's obligations under the Agreement, or (ii) the transferee executes, for a term ending on the expiration date of the Agreement and with such renewal terms as may be provided by the Agreement, Franchisor's then-current form of franchise agreement and other ancillary agreements as Franchisor may require for the Restaurant, which agreements will supersede the Agreement in all respects, and the terms of which may differ from the terms of the Agreement including, without limitation, a higher royalty fee and advertising contribution and a smaller or modified Franchisee's Territory, except that transferee will not be required to pay any initial franchise fee, and (b) the transferee or its principals guarantee the performance of all such obligations in writing in a form satisfactory to Franchisor;
- 14.3.7 That Franchisee remains liable for all of the obligations to Franchisor in connection with the Restaurant which arose prior to the effective date of the transfer and execute any instruments reasonably requested by Franchisor to evidence such liability;
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Beggars Pizza Franchise Disclosure Document, the franchisor has the discretion to require several documents from both the transferring franchisee and the new transferee as conditions for approving a franchise transfer.
The transferring franchisee may be required to sign a general release, absolving Beggars Pizza and its affiliates from any claims. Additionally, the franchisee may need to execute instruments to evidence their continued liability for obligations arising before the transfer's effective date.
The transferee may be required to enter into a written assignment, agreeing to take on all of the transferring franchisee's obligations under the existing franchise agreement. Alternatively, Beggars Pizza may require the transferee to execute the then-current form of the franchise agreement, which could include different terms such as higher royalty fees, advertising contributions, or a modified territory. In this case, the transferee will not be required to pay an initial franchise fee. The transferee or its principals might also need to guarantee the performance of all obligations in writing. These measures ensure that Beggars Pizza maintains control over its brand standards and financial interests during and after the transfer process.