What is the first distribution allocation for Beggars Pizza, and to which class of members is it directed?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
s ended December 31, 2024 and 2023, there was no compensation expense related to the issuance of the Class B and C units.
Voting rights are allocated to each member class based on the provisions of the Agreement. A general description of the Agreements distribution provisions are as follows:
First, 100 percent to Class A members' pro rata until the cumulative distributions received by the members equals $4,176,000.
Second, 100 percent to the Class B and C members in proportion to their vested percentage until the cumulative distributions received by such members equals $2,435,999.
Thereafter, pro rata to memb
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, the first distribution allocation is 100 percent to Class A members pro rata. This continues until the cumulative distributions received by these members equals $4,176,000.
This initial distribution phase ensures that Class A members, which include BPF Holding Corporation, receive a predetermined amount of returns before other classes of members (Class B and C) are allocated distributions. For a prospective franchisee, this information is relevant for understanding the financial structure and distribution priorities within the Beggars Pizza franchise system. It clarifies how profits are initially allocated among different membership classes.
Following the initial distribution to Class A members, the next allocation phase directs 100 percent of distributions to Class B and C members until they cumulatively receive $2,435,999. After both phases, distributions are then allocated pro rata based on vested percentages: 63.2 percent to Class A, 30 percent to Class B, and 6.8 percent to Class C. This tiered distribution system is detailed in the Beggars Pizza Franchise, LLC operating agreement.