What is the first distribution provision for Beggars Pizza Franchise, LLC Class A members?
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 distribution provisions for Beggars Pizza Franchise, LLC are structured in tiers based on membership class. The initial distribution prioritizes Class A members.
The first distribution provision allocates 100 percent of distributions pro rata to Class A members. This continues until the cumulative distributions received by these members equals $4,176,000. This means that initially, all available distributable funds will go to the Class A members in proportion to their ownership stake until they collectively receive the specified amount.
After Class A members receive their initial $4,176,000, the distribution structure shifts. The second tier allocates 100 percent of distributions to Class B and C members in proportion to their vested percentage until they cumulatively receive $2,435,999. Only after both these initial allocations are met do distributions occur pro rata to all members based on their vested percentage: 63.2 percent to Class A, 30 percent to Class B, and 6.8 percent to Class C.