Is a Beggars Pizza franchisee required to provide a copy of their lease to the franchisor?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
16. OBLIGATIONS UPON TERMINATION OR EXPIRATION
Upon termination or expiration of the Agreement, all rights granted hereunder to Franchisee will forthwith terminate, and:
- 16.4 Assignment of Lease. Franchisee must, at Franchisor's option, assign to Franchisor any interest which Franchisee has in any lease or sublease for the Premises. If Franchisor does not elect to exercise its option to acquire the lease or sublease for the Premises, Franchisee must make such modifications or alterations to the premises immediately upon termination or expiration of the Agreement as may be necessary to distinguish the appearance of the premises from that of the Restaurant under the System, and must make such specific additional changes thereto as Franchisor may reasonably request for that purpose. If Franchisee fails or refuses to comply with the requirements of this Section 16.4, Franchisor will have the right to enter upon the premises
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Beggars Pizza Franchise Disclosure Document, a franchisee must assign to Beggars Pizza any interest in a lease or sublease for the premises, should Beggars Pizza choose to exercise that option. This requirement is triggered upon termination or expiration of the franchise agreement.
Specifically, upon termination or expiration of the Franchise Agreement, Beggars Pizza has the option to have the franchisee assign any interest in the lease or sublease for the premises to them. If Beggars Pizza does not exercise this option, the franchisee is obligated to modify the premises to differentiate its appearance from a Beggars Pizza restaurant. The franchisee must also make any additional changes reasonably requested by Beggars Pizza for this purpose.
If the franchisee fails to comply with these requirements, Beggars Pizza has the right to enter the premises to make the necessary modifications. This clause ensures that upon termination or expiration of the franchise agreement, Beggars Pizza can maintain control over the location, either by taking over the lease or ensuring the premises no longer resemble a Beggars Pizza restaurant.