Does a Beggars Pizza franchisee gain any ownership interest in the Proprietary Marks through their use?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.3.4 Franchisee's use of the Proprietary Marks does not give Franchisee any ownership interest or other interest in or to the Proprietary Marks;
- 8.3.5 Any goodwill arising from Franchisee's use of the Proprietary Marks will inure solely and exclusively to the benefit of the Trademark Owner, and upon expiration or termination of the Agreement and the license granted herein, no monetary amount will be assigned to Franchisee or any of its principals, affiliates, subsidiaries, successors, licensees, or assigns as attributable to any goodwill associated with Franchisee's use of the System or the Proprietary Marks;
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, a franchisee's use of the Proprietary Marks does not grant them any ownership interest. The FDD clearly states that the franchisee's use of Beggars Pizza's trademarks does not give the franchisee any ownership or other interest in the Proprietary Marks. APG Enterprises, Inc. is the owner of all rights, title, and interest in the Proprietary Marks. Beggars Pizza has been granted the right to use, and to license others to use, the Proprietary Marks in accordance with the Franchise Agreement.
Furthermore, any goodwill that arises from the franchisee's use of the Proprietary Marks will solely benefit the Trademark Owner. Upon the expiration or termination of the Franchise Agreement, the franchisee will not receive any monetary compensation for goodwill associated with their use of the Beggars Pizza system or Proprietary Marks. This is a standard practice in franchising, as the brand and associated trademarks remain the property of the franchisor.
This means that while franchisees benefit from using the established Beggars Pizza brand and trademarks, they do not acquire any equity or ownership in those marks. This is a crucial point for prospective franchisees to understand, as the value and recognition of the Beggars Pizza brand are assets owned and controlled by the franchisor, APG Enterprises, Inc.