What are the exclusive uses of the Brand Fund contributions 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.
During our most recent fiscal year, 57% of Brand Fund expenditures were spent on media placement, team sponsorships, and donations; 33% on production, and 10% on administrative and related expenses. No Brand Fund fees were used for the solicitation of new franchise sales. We conduct advertising using third-party advertising agencies and in-house marketing personnel. We do not anticipate any Brand Fund expenditures will be principally used to solicit new franchise sales.
A reasonable amount of the Brand Fund fees paid by all franchisees may be used to cover our or our affiliate's costs and overhead as may be incurred from activities reasonably related to the direction and implementation of the Brand Fund and advertising programs for franchisees and the System including costs and salaries of personnel for creating and implementing advertising, promotional, and marketing programs, accounting expenses, and other out-of-pocket expenses paid to third parties. (Franchise Agreement, Section 12.5.3.)
Except as described above, neither we nor our affiliates receive payment for providing goods or services to the Brand Fund. We or our affiliate are not obligated by our administration of the Brand Fund to make expenditures for you that are equivalent or proportionate to your contributions, or to ensure that any particular franchisee benefits directly or on a pro rata basis from the expenditures or activities of the Brand Fund. (Franchise Agreement, Section 12.5.1.)
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, the Brand Fund, which franchisees contribute 1% of their gross sales to weekly, is used exclusively for specific purposes related to advertising, marketing, and promotion of the Beggars Pizza system. These funds are intended to cover the costs of maintaining, administering, directing, and preparing advertising, marketing, public relations, and promotional programs and materials. This includes various activities aimed at enhancing the image of the Beggars Pizza brand.
The Brand Fund is used for preparing and conducting advertising campaigns via radio, television, print, and the Internet, including social media. It also covers developing and maintaining webpages, reviewing local advertisements, and creating promotional materials like door hangers, mailers, coupons, and brochures. Additional uses include market research, sponsorships, website design and maintenance, public relations retainers, and mystery shoppers. The fund also supports activities such as celebrity endorsements, trade shows, association dues, search engine optimization, employing advertising agencies, purchasing promotional items, menu development, and providing marketing materials to businesses within the Beggars Pizza system.
During the most recent fiscal year, Beggars Pizza allocated 57% of the Brand Fund expenditures to media placement, team sponsorships, and donations, while 33% was spent on production, and 10% on administrative and related expenses. The FDD specifies that Brand Fund fees are not used for the solicitation of new franchise sales. Beggars Pizza uses third-party advertising agencies and in-house marketing personnel to conduct advertising activities.
Beggars Pizza may use a reasonable amount of the Brand Fund fees to cover the costs and overhead incurred from activities related to the direction and implementation of advertising programs, including personnel costs and salaries, accounting expenses, and out-of-pocket expenses paid to third parties. Franchisees should note that Beggars Pizza is not obligated to make expenditures equivalent or proportionate to individual franchisee contributions or ensure that any particular franchisee benefits directly or on a pro rata basis from the Brand Fund's expenditures.