What is the Franchisee's obligation regarding operating the Beggars Pizza restaurant, as stated in the agreement?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisor grants to Franchisee the right and Franchisee undertakes the obligation, upon the express terms and conditions set forth in the Agreement, to establish and operate a Beggars Pizza® restaurant under the Proprietary Marks and System (the "Restaurant") and to use the Proprietary Marks and the System, as they may be changed and improved from time to time at Franchisor's sole discretion, solely in connection therewith.Approved Location.
Franchisee must operate the Restaurant only at the location identified in Exhibit A (the "Approved Location").
If, at the time of execution of the Agreement, a location for the Restaurant has not been obtained by Franchisee and approved by Franchisor, Franchisee must lease or acquire a location within ninety (90) days after the date of the Agreement, subject to Franchisor's approval, as provided for in the Site Selection Addendum attached hereto as Exhibit B.
Franchisee will not relocate the Restaurant without the prior written approval of Franchisor.
Franchisor may withhold approval of relocation in Franchisor's sole discretion.
regarding the construction, design and operation of the Restaurant and applicable provisions of Section 4205 of the Patient Protection and Affordable Care Act of 2010 and related regulations regarding disclosure of nutritional information on menus and menu boards), and must timely obtain any permits, certificates, or licenses necessary for the full and proper conduct of the Restaurant including, without limitation, licenses to serve alcohol, licenses to do business, fictitious name registrations, sales tax permits, health permits, building permits, handicap permits, and fire clearances. Franchisee must comply with all federal and state laws requiring disclosure of nutritional information on menus and menu boards including, without limitation, the requirements of Section 4205 of the Patient Protection and Affordable Care Act of 2010 and related regulations.
Franchisee must immediately notify Franchisor in writing of the commencement of any action, suit, or proceeding, and of the issuance of any order, writ, injunction, award, or decree of any court, agency, or other governmental instrumentality, which may adversely affect the operation or financial condition of the Restaurant.
Franchisee acknowledges and agrees that Franchisor's usual business is offering and selling rights to operate Beggars Pizza® restaurants using the Proprietary Marks and System, developing enhancements to the System, and providing assistance to franchisees, and accordingly, Franchisor's usual business is different from Franchisee's usual business of operating a Beggars Pizza® restaurant.
During the term of the Agreement, Franchisee will hold itself out to the public as an independent contractor operating the Restaurant pursuant to a franchise agreement from Franchisor.
Franchisee must take such action as may be necessary to do so including, without limitation, exhibiting a notice of that fact in a conspicuous place at the Premises, the content of which Franchisor may specify.
Notwithstanding any other provision of the Agreement, Franchisee is solely responsible for all personnel and employment decisions relating to the Restaurant.
Franchisee understands and acknowledges that every detail of the Restaurant is important to Franchisee, Franchisor and other franchisees in order to develop and maintain high operating standards, to increase the demand for the products sold by all Beggars Pizza® restaurants operating under the System, and to protect Franchisor's reputation and goodwill.
- 7.2 Shop Operations. Franchisee must use the Premises solely for the operation of the business franchised hereunder; must keep the Restaurant open and in normal operation for such minimum hours and days as Franchisor may specify; must refrain from using or permitting the use of the Premises for any other purpose or activity at any time without first obtaining the written consent of Franchisor; and must operate the Restaurant in strict conformity with such methods, standards, and specifications as Franchisor may from time to time prescribe in the Manual or
otherwise in writing. Franchisee must refrain from deviating from such standards, specifications, and procedures without Franchisor's prior written consent.
Franchisee acknowledges and agrees that it must purchase such items from Begcom or such other designated suppliers in order to assure the uniform quality and image associated with the Restaurant.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, the franchisee has several obligations regarding the operation of the restaurant. The franchisee must operate the Beggars Pizza restaurant at the location specified in Exhibit A of the franchise agreement. If a location hasn't been secured, the franchisee has 90 days to find and lease or acquire a location, subject to Beggars Pizza's approval. The franchisee cannot relocate the restaurant without prior written approval from Beggars Pizza, which Beggars Pizza may withhold at its discretion.
The franchisee must use the premises only for the Beggars Pizza business and must keep the restaurant open during the minimum hours and days that Beggars Pizza specifies. The franchisee must operate the restaurant according to the methods, standards, and specifications that Beggars Pizza prescribes in its manual or in writing, and cannot deviate from these without prior written consent. The franchisee is responsible for obtaining all necessary permits, certificates, and licenses, including those for serving alcohol, business operations, sales tax, health, building, handicap access, and fire clearances, and must comply with all laws regarding nutritional information disclosures.
The franchisee is required to purchase certain proprietary and confidential items, such as pizza dough, sauces, sausage, and spice blends, from Begcom or other designated suppliers to ensure uniform quality and image. The franchisee must also notify Beggars Pizza immediately in writing of any action, suit, proceeding, order, writ, injunction, award, or decree that may adversely affect the restaurant's operation or financial condition. The franchisee is considered an independent contractor and must exhibit a notice of this fact in a conspicuous place at the premises. The franchisee is solely responsible for all personnel and employment decisions related to the restaurant.