Does the Beggars Pizza franchise agreement allow for renewal or extension of the franchise 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 the 2025 Beggars Pizza Franchise Disclosure Document, the franchise agreement allows for renewal. The initial term of a Beggars Pizza franchise is ten years, as stated in Section 2.1 of the franchise agreement.
The FDD indicates in Section 2.2 that a franchisee has the right to renew the franchise for one additional ten-year term, provided certain conditions are met. These conditions include providing timely written notice of the election to renew, completing all required maintenance, refurbishing, renovation, and remodeling of the restaurant to reflect the then-current image of a Beggars Pizza restaurant, and demonstrating current and substantial compliance with the franchise agreement.
Further conditions for renewal include satisfying all monetary obligations to Beggars Pizza, its affiliates, and trade creditors, presenting satisfactory evidence of the ability to remain in possession of the restaurant premises for the renewal term, executing the then-current form of franchise agreement (which may have materially different terms and conditions than the initial agreement), executing a general release, complying with then-current qualification and training requirements, and paying a renewal fee. Prospective franchisees should carefully consider these conditions and potential costs associated with remodeling and compliance to ensure they can meet the requirements for renewal.