Can the Beggars Pizza franchise agreement's territory be modified upon renewal?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.3.5 That (a) (i) the transferee (and if the transferee is other than an individual, such owners of a beneficial interest in the transferee as Franchisor may request) enters into a written assignment, in a form satisfactory to Franchisor, assuming and agreeing to discharge all of Franchisee's obligations under the Agreement, or (ii) the transferee executes, for a term ending on the expiration date of the Agreement and with such renewal terms as may be provided by the Agreement, Franchisor's then-current form of franchise agreement and other ancillary agreements as Franchisor may require for the Restaurant, which agreements will supersede the Agreement in all respects, and the terms of which may differ from the terms of the Agreement including, without limitation, a higher royalty fee and advertising contribution and a smaller or modified Franchisee's Territory, except that transferee will not be required to pay any initial franchise fee, and (b) the transferee or its principals guarantee the performance of all such obligations in writing in a form satisfactory to Franchisor;
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Beggars Pizza Franchise Disclosure Document, the franchise agreement territory can be modified upon renewal in certain circumstances. Specifically, when a franchisee transfers their franchise to a new owner, the new owner may be subject to a new franchise agreement with terms that differ from the original agreement. These differing terms can include a smaller or modified territory.
This means that if a franchisee sells their Beggars Pizza franchise, the person buying it might get a territory that is not the same as the one the original franchisee had. The new franchisee might have a smaller territory, or the boundaries of the territory could be different.
This is an important consideration for both the seller and the buyer of a Beggars Pizza franchise. The seller should be aware that the value of their franchise may be affected by the possibility of a smaller territory for the buyer. The buyer should carefully review the terms of the new franchise agreement, including the territory, before purchasing the franchise.