How must a Beggars Pizza franchisee make payments to the franchisor?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
As an inducement to Beggars Pizza Franchise, LLC ("Franchisor") to execute the Beggars Pizza Franchise, LLC Franchise Agreement between Franchisor and ("Franchisee") dated , 20 (the "Franchise Agreement"), the undersigned ("Guarantors"), jointly and severally hereby unconditionally guarantee to Franchisor and its successors and assigns that all of Franchisee's obligations under the Franchise Agreement and the Commissary Agreement between Begcom LLC ("Begcom") and Franchisee (collectively, the "Agreements") will be punctually paid and performed. Upon demand by Franchisor, Guarantors must immediately make each payment to Franchisor and Begcom required of Franchisee under the Agreements. Guarantor waives any right to require Franchisor or Begcom to (a) proceed against Franchisee for any payment required under the Agreements, (b) proceed against or exhaust any security from Franchisee, or (c) pursue or exhaust any remedy including, without limitation, any legal or equitable relief against Franchisee. Without affecting the obligations of Guarantors under this Guarantee, Franchisor or Begcom may extend, modify, or release any indebtedness or obligation of Franchisee or settle, adjust, or compromise any claims against Franchisee without notice to Guarantors. Guarantors waive notice of amendment of the Agreements and notice of demand for payment by Franchisee. Guarantors will be bound by any such amendments and changes to the Agreements.
Guarantors must defend, indemnify, and hold Franchisor and Begcom harmless against any losses, damages, liabilities, costs, and expenses including, without limitation, reasonable attorneys' fees, reasonable costs of investigation, court costs, and arbitration fees and expenses resulting from, consisting of, or arising out of or in connection with any failure by Franchisee to perform any obligation of Franchisee under the Agreements, any amendments thereto, or any other agreements executed by Franchisee in connection with the Agreements.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Beggars Pizza Franchise Disclosure Document, the franchisee's principals and their spouses must guarantee that all of the franchisee's obligations to Beggars Pizza and Begcom LLC will be punctually paid and performed. If the franchisee fails to make required payments, the guarantors must immediately make each payment to Beggars Pizza and Begcom LLC upon demand.
This guarantee extends to all obligations under the Franchise Agreement and the Commissary Agreement between Begcom LLC and the franchisee. The guarantors waive any right to require Beggars Pizza or Begcom to first pursue the franchisee for any payment or exhaust any security from the franchisee before demanding payment from the guarantors.
Beggars Pizza or Begcom can extend, modify, or release any debt or obligation of the franchisee without notifying the guarantors, and the guarantors will still be bound by these changes. The guarantors also agree to defend, indemnify, and hold Beggars Pizza and Begcom harmless against any losses, damages, liabilities, costs, and expenses, including attorney's fees, resulting from the franchisee's failure to perform their obligations under the agreements.
This arrangement ensures that Beggars Pizza has a direct recourse to the franchisee's principals and their spouses for any financial obligations, reducing the risk of non-payment. Prospective franchisees should carefully consider the implications of this guarantee and ensure that their guarantors fully understand their responsibilities.