In a Beggars Pizza franchise transfer, who must complete training programs?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor may require any or all of the following as conditions of its approval in its sole discretion:
14.3.1 That all of Franchisee's accrued monetary obligations and all other outstanding obligations to Franchisor and its affiliates have been satisfied;
14.3.2 That Franchisee is not in default of any provision of the Agreement, any amendment hereof or successor hereto, or any other agreement between Franchisee and Franchisor or its affiliates;
14.3.3 That the consideration or payment terms offered by a proposed transferee are not excessive or unreasonable, based on the gross revenues of the Restaurant and sale prices of other Beggars Pizza® restaurants in the System in Franchisor's reasonable business judgment;
14.3.4 That the transferor executes a general release, in a form satisfactory to Franchisor, of any claims against Franchisor and its affiliates, and their respective officers, directors, agents, shareholders, and employees;
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 Beggars Pizza's 2025 Franchise Disclosure Document, the franchisor may require a transferee to enter into a written agreement to discharge all of the franchisee's obligations. As part of this agreement, the transferee may be required to execute the then-current form of the franchise agreement. This agreement may include a higher royalty fee and advertising contribution and a smaller or modified Franchisee's Territory. However, the transferee will not be required to pay any initial franchise fee.
As a condition of approval for a franchise transfer, Beggars Pizza may require the transferee (or owners with beneficial interest if the transferee is not an individual) to enter into a written assignment. This assignment would ensure the transferee assumes and agrees to fulfill all obligations under the existing franchise agreement. Alternatively, the transferee might need to execute Beggars Pizza's current franchise agreement, which could have different terms than the original agreement, excluding the initial franchise fee.
While the FDD excerpt details conditions under which a transfer may be approved, it does not specifically state whether the transferee or their employees must complete a training program. To clarify whether training is required for a franchise transfer, a prospective franchisee should ask Beggars Pizza directly about the specific training requirements for transferees and their staff.