Does the Beggars Pizza franchisee have an opportunity to cure a default if they abandon the restaurant?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
- 15.2 Notice Without Opportunity to Cure. Upon the occurrence of any of the following events of default, Franchisor may, at its option, terminate the Agreement and all rights granted hereunder, without affording Franchisee any opportunity to cure the default, effective immediately upon the provision of notice to Franchisee in the manner provided under Section 22:
- 15.2.1 If Franchisee fails to locate an approved site or to construct and open the Restaurant within the time limits provided in the Site Selection Addendum or Section 5.3;
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Beggars Pizza Franchise Disclosure Document, a franchisee does not have the opportunity to cure a default if they abandon the restaurant.
Specifically, if a franchisee fails to locate an approved site or to construct and open the Restaurant within the time limits provided in the Site Selection Addendum or Section 5.3, Beggars Pizza can terminate the agreement immediately without any opportunity to cure the default. This means that if a franchisee does not meet the required deadlines for site selection and opening, Beggars Pizza has the right to terminate the agreement without giving the franchisee a chance to rectify the situation.
This policy is stricter than some franchise agreements, which often allow a period for franchisees to correct defaults before termination. Prospective Beggars Pizza franchisees should be aware of these terms and ensure they can meet the required deadlines to avoid immediate termination of their franchise agreement. It is important to carefully review the Site Selection Addendum and Section 5.3 to fully understand the obligations and timelines for site selection and construction.