Can a Beggars Pizza franchisee transfer their franchise during the renewal term?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
rminate that | | | | other agreement. |
| 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. |
| k. "Transfer" by franchisee – defined | 14.2. | A "transfer" is when you sell, assign, transfer, convey, pledge, encumber, merge, or give away any direct or indirect interest in your Franchise Agreement, yourself, or all or substantially all of the assets of the Restaurant. |
| l. Franchisor approval | 14.2. | Transfers require our prior written consent. |
| of transfer by franchisee | ||
| m. Conditions for franchisor approval of transfer | 14.3. |
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 able to transfer their franchise agreement. A "transfer" is defined as when a franchisee sells, assigns, transfers, conveys, pledges, encumbers, merges, or gives away any direct or indirect interest in their Franchise Agreement, themselves, or all or substantially all of the assets of the Restaurant.
However, the FDD states that transfers require Beggars Pizza's prior written consent. Several conditions must be met for Beggars Pizza to approve a transfer. These conditions include that the franchisee has satisfied all monetary obligations and is not in default of the Franchise Agreement or any other agreement. Further conditions include that the payment terms offered by the transferee are not excessive or unreasonable, the franchisee and their owners sign a general release, and the transferee signs Beggars Pizza's then-current form of Franchise Agreement.
Additional conditions for transfer approval include that the transferee is approved by Beggars Pizza as a franchisee, the franchisee remains liable for all accrued obligations, the transferee completes any required training programs, and the franchisee pays a transfer fee. Beggars Pizza also retains the right of first refusal to match any offer for the franchisee's business by a third party. While the FDD does not explicitly state whether these transfer conditions apply during the renewal term, it is reasonable to assume they do, as the renewal term is essentially an extension of the franchise agreement under a new agreement.