How must a Beggars Pizza franchisee conduct local marketing, advertising, and promotion?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
follows:
- 12.1 Grand Opening Advertising. At least forty-five (45) days prior to the opening of the Restaurant, Franchisee must prepare and submit to Franchisor for its approval a grand opening advertising and promotional program in the form and manner prescribed by Franchisor in writing. Franchisee must expend at least Ten Thousand Dollars ($10,000) on such grand opening advertising and promotion within thirty (30) days after the opening of the Restaurant.
- 12.2 Local Advertising and Promotion. During the term of the Agreement, except for the first three calendar months of operation of the Restaurant, Franchisee must expend, on a monthly basis, an amount equal to at least two percent (2%) of Franchisee's Gross Sales from the previous month on local marketing, advertising, and promotion. Notwithstanding the foregoing, Franchisee must expend at least Three Thousand Dollars ($3,000) on local marketing, advertising, and promotion during each of the first three (3) calendar months that the Restaurant is open, with the first month prorated if the Restaurant is open for only a partial month. All local marketing, advertising, and promotion must be conducted in such manner as Franchisor may, in its sole discretion, direct in the Manual or otherwise in writing.
- 12.3 Verification of Advertising Expenditures. Franchisee must submit verification of th
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, franchisees must adhere to specific guidelines for local marketing, advertising, and promotion. Except for the first three calendar months of operation, franchisees must spend at least 2% of the previous month's gross sales on local marketing, advertising, and promotion. During the first three months, Beggars Pizza requires a minimum expenditure of $3,000 per month for these activities, with the first month prorated if the restaurant opens partway through the month.
Beggars Pizza maintains control over how franchisees conduct local marketing, advertising, and promotion, directing the manner in which these activities are carried out through the Manual or other written instructions. Franchisees are also required to provide verification of their advertising expenditures, including addresses where hard copy advertisements were delivered, to Beggars Pizza in a format specified in the Manual or in writing.
In addition to local advertising, franchisees must participate in promotional programs developed by Beggars Pizza, such as gift card, loyalty, and coupon programs. Franchisees must use advertising and promotional materials with the Proprietary Marks in the form, color, location, and manner prescribed by Beggars Pizza. Franchisees are also obligated to participate in any online, electronic, or centralized ordering programs that Beggars Pizza develops or designates for the system. These obligations ensure brand consistency and adherence to Beggars Pizza's marketing strategies.