What does the Beggars Pizza Franchise Agreement Renewal Addendum state regarding the operation of the Restaurant?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
| This BEGGARS PIZZA FRANCHISE, LLC FRANCHISE AGREEMENT RENEWAL | ||
|---|---|---|
| ADDENDUM (the "Addendum") is made and entered into on, 20, by and between Beggars Pizza Franchise, LLC, formerly known as Beggars Pizza Franchise Corporation, an Illinois corporation located at 12949 South California Avenue, Blue Island, | ||
| Illinois 60406 ("Franchisor"); and | , a | |
| located at | WITNESSETH: | ("Franchisee"). WHEREAS, Franchisee currently operates a Beggars Pizza® restaurant located at: |
| Franchisee dated | , 20 | (the "Restaurant") pursuant to a prior franchise agreement entered into between Franchisor and (the "Prior Agreement"); |
| Franchise, LLC Franchise Agreement dated Agreement; and | WHEREAS, Franchisor and Franchisee have entered into that certain Beggars Pizza , 20 (the "Franchise Agreement") for the purpose of renewing Franchisee's rights granted under the Prior | |
| Agreement as set forth herein. | WHEREAS, Franchisor and Franchisee desire to amend the terms of the Franchise | |
| hereby acknowledged, the parties, intending to be legally bound, agree as follows: | NOW, THEREFORE, in consideration of the terms and conditions hereinafter set forth, and other good and valuable consideration, the receipt, adequacy and sufficiency of which are | |
| 1. | The fifth WHEREAS clause on Page 1 of the Franchise Agreement is hereby | |
| deleted in its entirety and replaced with the following language: | ||
| restaurant; | WHEREAS, Franchisee has operated a Beggars Pizza® restaurant under Franchisor's System and Proprietary Marks under a franchise agreement, and wishes to enter into a renewal franchise agreement with Franchisor to continue to operate such | |
| 2. | Section 1.2 of the Franchise Agreement is hereby deleted in its entirety and | |
| replaced with the following: | ||
| 1.2 not relocate the | Restaurant without Franchisor may withhold approval of relocation in its sole discretion. | Approved Location. Franchisee will operate the Restaurant only at the location identified in Exhibit A (the "Approved Location"). Franchisee will Franchisor's prior written approval. |
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Beggars Pizza Franchise Disclosure Document, the Franchise Agreement Renewal Addendum addresses the franchisee's operation of the Beggars Pizza restaurant. Specifically, the addendum states that the franchisee must operate the Restaurant only at the location identified in Exhibit A, which is referred to as the "Approved Location." The franchisee is prohibited from relocating the Restaurant without obtaining prior written approval from Beggars Pizza. Beggars Pizza retains the right to withhold approval for relocation at its sole discretion.
This means that a franchisee cannot simply move their Beggars Pizza restaurant to a new location without first getting the franchisor's permission. This provision allows Beggars Pizza to maintain control over the placement of its franchises and ensure that each location meets certain criteria and standards. The initial approved location is typically determined during the site selection process, and any changes require franchisor oversight.
For a prospective Beggars Pizza franchisee, this clause highlights the importance of carefully considering the initial location of their restaurant. It also emphasizes the need to communicate and work with Beggars Pizza if relocation becomes necessary, as approval is not guaranteed. This ensures brand consistency and strategic placement of all Beggars Pizza locations.