What is a Beggars Pizza franchisee required to pay Begcom for?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
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IN WITNESS WHEREOF, the parties hereto have duly executed this Site Selection Addendum on the date first above written.
a , BEGGARS PIZZA FRANCHISE, LLC, an Illinois limited liability company
EXHIBIT F
GUARANTEE, INDEMNIFICATION, AND ACKNOWLEDGMENT
(for execution by Franchisee's principals and their spouses)
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.
Guarantors acknowledge and agree to be individually bound by all of the confidentiality provisions and non-competition covenants contained in Section 10 and Section 17 of the Franchise Agreement.
This Guarantee, Indemnification, and Acknowledgement (the "Guarantee") will terminate upon the termination or expiration of the Agreements, except that all obligations and liabilities of Guarantors which arose from events which occurred on or before the effective date of such termination will remain in full force and effect until satisfied or discharged by Guarantors, and all covenants which by their terms continue in force after the expiration or termination of the Agreements will remain in force according to their terms.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Beggars Pizza Franchise Disclosure Document, a franchisee is obligated to make payments to Begcom LLC based on the Commissary Agreement established between the two parties. Begcom is identified as the designated supplier for specific food items and supplies, including cheeses, sausages, and paper products, some of which may bear Beggars Pizza's proprietary marks.
This agreement mandates that franchisees must purchase these designated items from Begcom to maintain the uniform quality and image associated with Beggars Pizza restaurants. The franchisee's principals are required to guarantee that all of the franchisee's obligations to Begcom will be punctually paid and performed.
Furthermore, the guarantee extends to indemnifying Beggars Pizza and Begcom against any losses, damages, liabilities, costs, and expenses, including attorney's fees, arising from the franchisee's failure to fulfill any obligations under the Commissary Agreement. This arrangement ensures that Beggars Pizza maintains control over essential ingredients and supplies, safeguarding brand consistency across all franchise locations.