When must a Beggars Pizza franchisee join a Cooperative established after the franchise commences operation?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
If a Cooperative applicable to the Restaurant is established at any later time during the term of the Agreement, Franchisee must become a member of such Cooperative no later than thirty (30) days after the date on which the Cooperative commences operation.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, a franchisee must become a member of a Cooperative no later than thirty (30) days after the date on which the Cooperative commences operation, if such a Cooperative is established after the franchisee commences operations.
This means that if Beggars Pizza designates a geographical area for a regional advertising and promotional cooperative after a franchisee has already started operating their restaurant, the franchisee has 30 days from the date the cooperative begins operating to join. This requirement ensures that all franchisees contribute to regional advertising efforts, which Beggars Pizza believes is important for maintaining brand standards and increasing demand for products sold by all Beggars Pizza restaurants.
It is important to note that Beggars Pizza has the discretion to determine whether a Cooperative is applicable to a restaurant. Additionally, the FDD states that Beggars Pizza may grant a franchisee an exemption from the requirement of membership in a Cooperative, but the franchisee would then be required to expend the full amount normally contributed to the cooperative on local promotion and advertising. Franchisees should discuss the potential costs and benefits of Cooperative membership with Beggars Pizza before signing the Franchise Agreement.