Will a Beggars Pizza franchisee be required to pay an initial franchise fee upon renewal?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
taurants in the System in Franchisor's reasonable business judgment;
- 14.3.4 That the transferor executes a general release, in a form satisfactory to Franchisor, of any claims against Franchisor and its affiliates, and their respective officers, directors, agents, shareholders, and employees;
- 14.3.5 That (a) (i) the transferee (and if the transferee is other than an individual, such owners of a beneficial interest in the transferee as Franchisor may request) enters into a written assignment, in a form satisfactory to Franchisor, assuming and agreeing to discharge all of Franchisee's obligations under the Agreement, or (ii) the transferee executes, for a term ending on the expiration date of the Agreement and with such renewal terms as may be provided by the Agreement, Franchisor's then-current form of franchise agreement and other ancillary agreements as Franchisor may require for the Restaurant, which agreements will supersede the Agreement in all respects, and the terms of which may differ from the terms of the Agreement including, without limitation, a higher royalty fee and advertising contribution and a smaller or modified Franchisee's Territory, except that transferee will not be required to pay any initial franchise fee, and (b) the transferee or its principals guarantee the performance of all such obligations in writing in a form satisfactory to Franchisor;
- 14.3.6 That the transferee (and if the transferee is other than an individual, such owners of a beneficial interest in the transferee as Franchisor may request) demonstrates to Franchisor's satisfaction that it meets Franchisor's educational, managerial, and business
standards; possesses a good moral character, business reputation, and credit rating;
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, a franchisee transferring their franchise to another party under certain conditions will not be required to pay an initial franchise fee. Specifically, if the transferee executes the then-current form of the franchise agreement for a term ending on the expiration date of the agreement, they will not have to pay an initial franchise fee. This is contingent on the agreement including any renewal terms and other ancillary agreements that Beggars Pizza may require for the restaurant.
However, the terms of the new agreement may differ from the original, potentially including a higher royalty fee, increased advertising contribution, or a modified territory. The transferee or its principals must also guarantee the performance of all obligations in writing, in a form satisfactory to Beggars Pizza.
Furthermore, for franchisees renewing their own agreements, Section 4.1 of the Franchise Agreement is replaced, stating that the franchisee will pay a renewal fee to Beggars Pizza upon execution of the agreement. The specific amount of this renewal fee is not provided in this excerpt. This renewal fee is considered fully earned and non-refundable due to administrative and other expenses incurred by Beggars Pizza in granting the renewal and for the lost opportunity to enter into a franchise agreement with other parties.