What expenses am I responsible for reimbursing Beggars Pizza for, regarding additional on-site evaluations?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
If you do not have an approved location before signing your Franchise Agreement, you will sign a Site Selection Addendum, we will provide such on-site evaluations as we deem advisable as part of our evaluation of your request for site approval. We will not provide on-site evaluations for any proposed site before our receipt of the information or materials required by your Franchise Agreement. If an on-site evaluation is deemed necessary and appropriate by us, we will conduct up to two on-site evaluations at our expense. For each additional on-site evaluation, you must reimburse us for our related expenses, including the costs of travel, lodging, and meals (Franchise Agreement, Exhibit B, Paragraph 5);
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, if you require more than two on-site evaluations for site approval, you will be responsible for reimbursing Beggars Pizza for their related expenses. Beggars Pizza will provide up to two on-site evaluations at their own expense.
The expenses you are responsible for covering include the costs of travel, lodging, and meals incurred by Beggars Pizza during these additional evaluations. This means that if Beggars Pizza personnel need to visit potential locations to assess their suitability, you will need to pay for their transportation to and from the site, their accommodation during the visit, and the cost of their meals.
This reimbursement requirement is fairly standard in the franchise industry, as it ensures that the franchisee bears the costs associated with extra assistance beyond what is initially provided by the franchisor. It is important for prospective franchisees to factor in these potential costs when budgeting for site selection, especially if they anticipate needing multiple evaluations before finding an approved location. Understanding these financial responsibilities upfront can help in making informed decisions about site selection and overall investment.