What exhibit contains the form for the Guarantee, Indemnification, and Acknowledgment required for Beggars Pizza franchisees?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
a , BEGGARS PIZZA FRANCHISE, LLC, an Illinois limited liability company
EXHIBIT F
GUARANTEE, INDEMNIFICATION, AND ACKNOWLEDGMENT
(for execution by Franchisee's principals and their spouses)
As an inducement to Beggars Pizza Franchise, LLC ("Franchisor") to execute the Beggars Pizza Franchise, LLC Franchise Agreement between Franchisor and ("Franchisee") dated , 20 (the "Franchise Agreement"), the undersigned ("Guarantors"), jointly and severally hereby unconditionally guarantee to Franchisor and its successors and assigns that all of Franchisee's obligations under the Franchise Agreement and the Commissary Agreement between Begcom LLC ("Begcom") and Franchisee (collectively, the "Agreements") will be punctually paid and performed. Upon demand by Franchisor, Guarantors must immediately make each payment to Franchisor and Begcom required of Franchisee under the Agreements. Guarantor waives any right to require Franchisor or Begcom to (a) proceed against Franchisee for any payment required under the Agreements, (b) proceed against or exhaust any security from Franchisee, or (c) pursue or exhaust any remedy including, without limitation, any legal or equitable relief against Franchisee. Without affecting the obligations of Guarantors under this Guarantee, Franchisor or Begcom may extend, modify, or release any indebtedness or obligation of Franchisee or settle, adjust, or compromise any claims against Franchisee without notice to Guarantors. Guarantors waive notice of amendment of the Agreements and notice of demand for payment by Franchisee. Guarantors will be bound by any such amendments and changes to the Agreements.
Guarantors must defend, indemnify, and hold Franchisor and Begcom harmless against any losses, damages, liabilities, costs, and expenses including, without limitation, reasonable attorneys' fees, reasonable costs of investigation, court costs, and arbitration fees and expenses resulting from, consisting of, or arising out of or in connection with any failure by Franchisee to perform any obligation of Franchisee under the Agreements, any amendments thereto, or any other agreements executed by Franchisee in connection with the Agreements.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, the Guarantee, Indemnification, and Acknowledgment form that must be executed by the franchisee's principals and their spouses is found in Exhibit F. This form is a critical component of the franchise agreement.
The document states that the guarantors (principals and their spouses) jointly and severally unconditionally guarantee that all of the franchisee's obligations under the Franchise Agreement and the Commissary Agreement will be punctually paid and performed. This means that the franchisor, Beggars Pizza Franchise, LLC, can seek payment directly from the guarantors if the franchisee fails to meet their financial obligations.
The guarantors also waive any right to require Beggars Pizza to first pursue the franchisee for payment or exhaust any security from the franchisee before seeking payment from them. Furthermore, the guarantors must defend, indemnify, and hold Beggars Pizza harmless against any losses, damages, liabilities, costs, and expenses arising from the franchisee's failure to perform their obligations under the agreements. This includes legal fees and costs associated with any investigation or arbitration.
This requirement is a standard practice in franchising, as it provides the franchisor with an additional layer of financial security. Prospective Beggars Pizza franchisees should carefully review this exhibit and understand the full extent of their personal liability before signing the franchise agreement.