What evidence must a Beggars Pizza franchisee provide to demonstrate their right to remain in possession of the premises for the renewal term?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.4 Assignment of Lease. Franchisee must, at Franchisor's option, assign to Franchisor any interest which Franchisee has in any lease or sublease for the Premises. If Franchisor does not elect to exercise its option to acquire the lease or sublease for the Premises, Franchisee must make such modifications or alterations to the premises immediately upon termination or expiration of the Agreement as may be necessary to distinguish the appearance of the premises from that of the Restaurant under the System, and must make such specific additional changes thereto as Franchisor may reasonably request for that purpose. If Franchisee fails or refuses to comply with the requirements of this Section 16.4, Franchisor will have the right to enter upon the premises
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
Based on the 2025 Beggars Pizza Franchise Disclosure Document, the franchisee's obligations regarding the premises upon termination or expiration of the agreement are outlined. Specifically, if Beggars Pizza does not elect to acquire the lease or sublease for the premises, the franchisee must modify or alter the premises immediately upon termination or expiration of the agreement. These modifications should distinguish the appearance of the premises from that of a Beggars Pizza restaurant, and the franchisee must make any additional changes reasonably requested by Beggars Pizza for that purpose.
According to the 2025 FDD, if the franchisee fails to comply with these requirements, Beggars Pizza has the right to enter the premises to make the required changes. Additionally, the franchisee may be required to assign any interest in the lease or sublease for the premises to Beggars Pizza, should Beggars Pizza elect to exercise this option.
The 2025 Franchise Agreement outlines that the franchisee must operate the restaurant only at the location identified in Exhibit A, referred to as the "Approved Location." The franchisee cannot relocate the restaurant without prior written approval from Beggars Pizza, which Beggars Pizza may withhold at its sole discretion. This indicates that maintaining the approved location is crucial for the franchisee's operation and renewal prospects.