Does the Beggars Pizza franchise agreement require franchisees to indemnify them?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Manual Replacement Fee | $250 | When billed. | Payable if you lose or misplace any part of the Manuals and we replace it. |
| Transfer Fee | $7,500 | Before transfer. | Payable if you transfer or assign your franchise. |
| Product Inspection and Testing | Cost of inspection or testing. We estimate that our costs will be between $500 and $2,000. | When billed. | Payable if you ask us to evaluate or approve a proposed supplier. See Item 8 for information about supplier restrictions and our supplier approval process. |
| Software Support and Upgrades | Approximately $175/month subject to increases. | As incurred. | You must pay Speedline Solutions, Inc. (“Speedline”) for license fees, ongoing software support, and upgrades. |
| Legal Fees and Indemnification | Varies according to cost or loss incurred. | On demand. | You indemnify us and our affiliates from liability for any claim based on or arising from your operation of the Restaurant. |
| Additional Assistance | Then-current fee. We currently charge $75/hour or $550/day. | When billed. | At your request, we may provide additional advice and assistance to you in our discretion. |
Source: Item 6 — OTHER FEES (FDD pages 9–11)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, franchisees are required to indemnify Beggars Pizza and its affiliates. This requirement is listed under "Legal Fees and Indemnification" within the section detailing other fees. The amount for this indemnification varies according to the cost or loss incurred by Beggars Pizza. This payment is due on demand.
In practical terms, this means that as a Beggars Pizza franchisee, you are responsible for protecting Beggars Pizza from any legal claims or liabilities that arise from your operation of the restaurant. This could include lawsuits, damages, or other expenses incurred by Beggars Pizza due to your actions or the actions of your employees. The financial impact of this indemnification could be significant, as it is tied to the actual costs or losses incurred, which are not capped or predetermined.
Indemnification clauses are common in franchise agreements, as they protect the franchisor from liabilities caused by the franchisee's business operations. However, the scope and terms of indemnification can vary. Prospective Beggars Pizza franchisees should carefully review this clause with a legal professional to fully understand their obligations and potential financial exposure. It is important to assess the types of risks that could trigger this indemnification and consider insurance coverage to mitigate potential losses.