factual

What must a Beggars Pizza franchisee refrain from doing regarding advertising outside of their territory?

Beggars_Pizza Franchise · 2025 FDD

Answer from 2025 FDD Document

You must provide delivery service of all approved menu items to customers located in your Territory. Delivery service must be made in accordance with our then-current delivery standards as described in the Manuals. Your delivery rights are not exclusive, and other Beggars Pizza® Restaurants may accept delivery orders and provide delivery services in your Territory. In addition, you may accept orders and provide delivery service of approved menu items outside of your Territory (except in the specific geographic areas specified in your Franchise Agreement) provided that you refrain from mailing or delivering, or directing any third party from mailing or delivering, by any means, any hard copy print advertising, door hangers, hand-out advertisements, coupons, mailers, or other hard copy advertisements to business and residential addresses outside of your Territory. Any hard copy advertisement in a newspaper or any other advertising by television, radio, the Internet, or any other print or electronic medium will not be subject to this territorial restriction. You do not have the right to use other channels of distribution such as the Internet, telemarketing, or other direct marketing to make sales outside of your Territory unless permitted by us in the Manuals or otherwise in writing.

Source: Item 12 — TERRITORY (FDD pages 26–28)

What This Means (2025 FDD)

According to Beggars Pizza's 2025 Franchise Disclosure Document, a franchisee is restricted in the type of advertising they can conduct outside of their designated territory. Specifically, franchisees must refrain from mailing or delivering hard copy print advertising, door hangers, hand-out advertisements, coupons, mailers, or other hard copy advertisements to business and residential addresses outside of their territory. This restriction applies to the franchisee themselves or directing any third party to do so.

However, this restriction does not extend to all forms of advertising. Beggars Pizza franchisees are permitted to advertise in newspapers or through television, radio, the Internet, or any other print or electronic medium without being subject to territorial restrictions. This allows franchisees to reach a broader audience beyond their immediate territory through these channels.

Furthermore, the FDD states that franchisees do not have the right to use other channels of distribution such as the Internet, telemarketing, or other direct marketing to make sales outside of their Territory unless permitted by Beggars Pizza in the Manuals or otherwise in writing. This implies that while some digital advertising is allowed, direct online sales efforts outside the territory require explicit approval from Beggars Pizza. This policy aims to balance the franchisee's ability to market their location with Beggars Pizza's need to manage brand consistency and avoid territorial conflicts.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.