Is a Beggars Pizza franchisee required to comply with non-competition and confidentiality covenants after termination or non-renewal?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
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| Provision | Section in Franchise Agreement | Summary |
|---|---|---|
| i. Franchisee's obligations on termination/non-renewal | 16. | You must (a) stop operating the Restaurant, dispose of any proprietary products, and cease holding yourself out as a present or former Beggars Pizza® franchisee, (b) stop using the System, all confidential information, and the Proprietary Marks, (c) cancel all assumed names containing the Proprietary Marks, (d) offer us the option to purchase or assume the lease for the Restaurant, (e) assign all telephone numbers to us that you used in connection with the operation of the Restaurant, (f) refrain from infringing on the Proprietary Marks, (f) pay all sums owing to us and our affiliates, (g) pay us liquidated damages, (h) return the Manuals and all other confidential information to us, (i) cancel or assign to us all Internet domain names, URLs, and Internet sites containing or reflecting the Proprietary Marks, (j) offer us the option to purchase the Restaurant's assets, and (k) comply with non-competition and confidentiality covenants. |
| j. Assignment of contract by franchisor | 14.1. | We may transfer or assign your Franchise Agreement or any part of its rights or obligations to any party. Any designated assignee will become solely responsible for all our obligations under your Franchise Agreement from the date of assignment. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 31–35)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, a franchisee is required to comply with both non-competition and confidentiality covenants after the termination or non-renewal of their franchise agreement. Specifically, upon termination or non-renewal, the franchisee must cease operating the restaurant as a Beggars Pizza, discontinue using the Beggars Pizza system, confidential information, and proprietary marks. They must also comply with non-competition and confidentiality covenants.
The non-competition covenant restricts the franchisee from owning or having any interest in a business that offers pizza, pizza products, Italian-style food, or other similar food items for two years after the expiration or termination of the Franchise Agreement. This restriction applies within the franchisee's territory, within ten miles of the restaurant's location, or within ten miles of any business operating under Beggars Pizza's proprietary marks.
These post-termination obligations are common in franchising to protect the brand and confidential information of Beggars Pizza. Prospective franchisees should carefully consider the scope and duration of these covenants, as they could impact their ability to engage in similar business ventures after leaving the Beggars Pizza system. It is important to fully understand these restrictions before entering into a franchise agreement.