Does the Beggars Pizza franchise agreement allow for extensions beyond the renewal term?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| a. Length of the term of the franchise | 2.1. | Ten years. |
| b. Renewal or extension of the term | 2.2. | You have the right to renew for one additional ten-year term if certain conditions are met. |
| c. Requirements to renew or extend | 2.2. | Conditions include (a) timely delivery of written notice of your election to renew, (b) completion of all maintenance, refurbishing, renovating, and remodeling of the Restaurant and all of the equipment, fixtures, furnishings, and interior and exterior signage as we require so that the Restaurant reflects the then-current image of a Beggars Pizza® Restaurant, (c) your current compliance with your Franchise Agreement and substantial compliance with your Franchise Agreement during the term to date, (d) your satisfaction of all monetary obligations owed to us, our affiliates, and trade creditors, (e) presenting satisfactory evidence of your ability to remain in possession of the Restaurant premises for the duration of the renewal term, (f) your execution of our then-current form of Franchise Agreement which may have materially different terms and conditions than your initial Franchise Agreement, (g) your and your owners' execution of a general release, (h) your compliance with our then-current qualification and training requirements, and (i) your payment of a renewal fee. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 31–35)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, the franchise agreement allows for one renewal term. The initial term of a Beggars Pizza franchise is ten years, and franchisees have the option to renew for an additional ten-year term if they meet certain requirements.
To renew their franchise agreement with Beggars Pizza, franchisees must provide timely written notice of their intent to renew. They must also complete all required maintenance, refurbishing, renovations, and remodeling to ensure the restaurant reflects the current image of a Beggars Pizza restaurant. Franchisees must be in current compliance with the franchise agreement and have demonstrated substantial compliance throughout the initial term.
Furthermore, franchisees must satisfy all outstanding monetary obligations to Beggars Pizza, its affiliates, and trade creditors. They need to provide evidence of their ability to maintain possession of the restaurant premises for the duration of the renewal term. Franchisees are also required to execute the then-current form of the franchise agreement, which may contain materially different terms and conditions compared to the initial agreement. Additionally, they and their owners must execute a general release, comply with the then-current qualification and training requirements, and pay a renewal fee. The FDD does not state whether extensions beyond this single renewal term are permitted, so prospective franchisees should clarify this point with Beggars Pizza during their due diligence.
Because the FDD does not specify whether extensions beyond the single renewal term are possible, it is important for potential franchisees to discuss this with Beggars Pizza. Understanding the long-term possibilities for continuing the franchise beyond the initial and renewal terms is crucial for long-term business planning.