Is a Beggars Pizza franchisee allowed to use promotional or advertising plans or materials not approved by the franchisor?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
All advertising and promotion including any design, advertisement, sign, or any form of publicity must be in the media channel and of a type and format as we may approve including television, print media (including yellow pages), radio, and local promotional events. All advertising and promotion must be conducted in a dignified manner, and conform to the standards and requirements we specify. You must not use any advertising or promotional plans or materials until you have received our written approval. (Franchise Agreement, Section 12.6.) You must submit to us for our prior approval samples of all advertising and promotional plans and materials for any print, broadcast, cable, electronic, computer, or other media (including the Internet) that you wish to use that we have not prepared or previously approved within the preceding six months. You must not use these plans or materials until they have been approved in writing by us. We will be deemed to have disapproved them if you do not receive written notice of approval from us within 15 days of the date of our receipt of these samples or materials. (Franchise Agreement, Section 12.7.) You must participate in all promotional programs we develop for the System including the issuance and acceptance of gift cards, loyalty cards, gift certificates, and coupons.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 19–26)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, franchisees must obtain written approval from the franchisor before using any advertising or promotional materials that Beggars Pizza has not prepared or previously approved within the preceding six months. This includes materials for print, broadcast, cable, electronic, computer, or other media, including the Internet. If a franchisee does not receive written notice of approval within 15 days of Beggars Pizza receiving the materials, the plans are considered disapproved.
This requirement ensures that all advertising and promotional efforts align with Beggars Pizza's brand standards and marketing strategies. It allows Beggars Pizza to maintain consistency and control over its public image. Franchisees are also required to participate in all promotional programs that Beggars Pizza develops for the system, including the issuance and acceptance of gift cards, loyalty cards, gift certificates, and coupons.
Beggars Pizza or its affiliates direct all advertising, marketing, and promotional programs and have sole discretion over all aspects of those programs including the concepts, materials, and media used and their placement and allocation. The Brand Fund, all contributions to it, and any of its earnings are used exclusively to meet the costs of maintaining, administering, directing, conducting, and preparing advertising, marketing, public relations, and/or promotional programs and materials, and any other activities which Beggars Pizza believes will enhance the image of the System including the costs of preparing and conducting radio, television, print, and Internet-based advertising campaigns, utilizing social and business networking media sites and other emerging media or promotional tactics.
This level of control over advertising is common in franchising, as it protects the brand's reputation and ensures a consistent message across all locations. Prospective franchisees should be aware of these requirements and factor them into their marketing plans and budgets. Franchisees also must pay the Brand Fund a weekly fee of 1% of their Gross Sales for the preceding Accounting Period. These contributions to the Brand Fund are in addition to the required grand opening and local advertising.