For Beggars Pizza, what fee is the customer subject to if they terminate the agreement early?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Quote.
- b. Either party may terminate this Agreement (i) if the other party materially breaches this Agreement and such breach has not been cured within thirty (30) days of notice of such breach; or (ii) if the other party becomes the subject of a petition in bankruptcy or any other proceeding relating to insolvency, receivership, liquidation or assignment for the benefit of creditors and in the case of any such involuntary proceeding it remains undismissed thirty (30) days after filing. Any termination by Customer (other than for SpeedLine's uncured material breach of this Agreement as set forth in this Section 11.b or pursuant to Section 15) and any termination by SpeedLine for Customer's breach, prior to the end of the Initial Term or, as applicable, the current Renewal Term, will subject Customer to an early termination (acceleration) fee by way of liquidated damages and not as a penalty for lost Subscription Fee revenue to SpeedLine for the remainder of the Initial Term or Renewal Term, as the case may be. The early termination fee will be (a) the amount of all Subscription Fees that would be due for the remainder of the then current contract Term (that is the Initial Term or the current Renewal Term), plus (b) any other fees or amounts due (for example, for professional services).
- c. In addition, SpeedLine, at its sole discretion, may suspend Customer's use of the Service if Customer materially breaches this Agreement and such breach has not been cured within 5 business days of notice of such breach.
d. Upon termination or expiration of this Agreement, Customer shall have no rights to continue use of the Service. The following provisions will survive termination: all definitions, Customer's accrued fmancial obligations, the license to Customer Content and User Data to the extent reasonable for SpeedLine's discharge of its post-termination obligations, and the following Sections and paragraphs: Sections 4, 9, 11.d, 13, 14, 16, and 17 of this Agreement.
**12.
Source: Item 23 — RECEIPT (FDD pages 39–192)
What This Means (2025 FDD)
According to the 2025 FDD, a Beggars Pizza customer may be subject to an early termination fee if they end the agreement before the end of the initial term or any renewal term. This fee applies both when the customer terminates the agreement (except in cases of SpeedLine's uncured material breach or pursuant to Section 15) and when SpeedLine terminates the agreement due to the customer's breach.
The early termination fee is calculated as the sum of all subscription fees that would have been due for the remainder of the current contract term, whether it's the initial term or a renewal term. Additionally, any other outstanding fees or amounts owed by the customer, such as those for professional services, will be included in the early termination fee. This fee is considered liquidated damages to compensate SpeedLine for lost subscription revenue and is not considered a penalty.
In the event that the support products and services are paid for monthly (excluding those that are part of a subscription Software license) and cancelled before the initial 12-month term, the early termination fee will be the lesser of $600 or the remaining charges for the initial 12-month term. For support products and services paid for as part of a subscription Software license, the early termination fee will be the subscription fees owed for the remainder of the then-current initial term (36 or 12 months, as applicable) or 12 months' renewal term, whichever applies. The termination fee will be processed on the day that the Customer notifies SpeedLine of the Customer's cancellation.