What must the Beggars Pizza franchisee do if any litigation relating to their use of the Proprietary Marks arises?

According to Beggars Pizza's 2025 Franchise Disclosure Document, if any litigation arises relating to a franchisee's use of the Proprietary Marks, the franchisee must execute any documents and perform such acts as may be necessary to carry out such defense or prosecution in Beggars Pizza's sole opinion. This includes becoming a nominal party to any legal action.

Beggars Pizza will defend the franchisee against any third-party claim, suit, or demand arising out of the franchisee's use of the Proprietary Marks, provided that Beggars Pizza determines that the franchisee has used the Proprietary Marks in accordance with the Franchise Agreement. If Beggars Pizza determines that the franchisee has not used the Proprietary Marks in accordance with the agreement, the cost of the defense, including any judgment or settlement, will be borne by the franchisee.

Except to the extent that such litigation is the result of the franchisee's use of the Proprietary Marks in a manner inconsistent with the terms of the Franchise Agreement, Beggars Pizza will reimburse the franchisee for its out-of-pocket costs in performing such acts. This means that if the franchisee follows the guidelines set forth in the agreement, Beggars Pizza will cover the costs associated with litigation, but if the franchisee deviates from the agreement, they may be responsible for covering the costs themselves.