factual

What is the Beggars Pizza franchisee's obligation regarding payment for support services from SpeedLine?

Beggars_Pizza Franchise · 2025 FDD

Answer from 2025 FDD Document

he Customer. This Agreement does not allow the Customer to acquire Software updates for modules for which it does not have a valid current SpeedLine Software License Agreement or SpeedDine Online Ordering System Subscription Agreement (as applicable). Updates provided to the Customer will be part of the Software and will be governed by and be part of the SpeedLine Software License Agreement or SpeedDine Online Ordering System Subscription Agreement (as applicable).

Payments: All Standard Support, Second-Level Support, or Per Incident Support services fees payments shall be invoiced and paid according to the payment frequency indicated in the Quote (e.g., monthly or yearly). Payment frequency must be the same for all support products and services. All support services fees are non-refundable. The Customer will provide a credit card or debit card number, pre-authorized debit account, or equivalent to be placed on file. For monthly fees, the total, plus applicable taxes, will be charged on the 25th (or the closest preceding business day) of each month. SpeedLine reserves the right to charge its current standard fees for any payments which are returned for insufficient funds, or for any pre-authorized payments that are declined for any reason.

Changes to Products or Services: In the event of a change in the Software products covered, services, support plan, or payment frequency, the parties will enter into an additional or replacement Quote.

Fees Adjustments: The support service plan amounts and other services fees charged by SpeedLine and as listed in the Quote are subject to change from time to time by SpeedLine giving written notice of the change to the Customer, to become effective at the beginning of the next payment period (i.e., annual, other set period, or monthly), or (a) in the case of Per Incident Support, immediately, (b) in the case of support service plans paid for as part of a subscription Software license, as provided in the SpeedLine Software License Agreement and/or SpeedDine Online Ordering System Subscription Agreement.

Cancellation: The Customer may cancel the support services at any time, effective at the completion of a payment period set forth in the Quote (i.e., annual or other set period, or monthly) and, in the case of monthly support products and services, on at least one month's advance written notice to SpeedLine. All support services fees are non-refundable, except as provided in the following sentence in the case of cancellation by SpeedLine. SpeedLine reserves the right to cancel the Support Services Agreement at any time on not less than 12 months' notice to the Customer, in which case SpeedLine will refund any prepaid fees pro rated on account of the period after cancellation. In the event of cancellation by the Customer, except as expressly provided otherwise in any agreement between SpeedLine and the Customer (a) the Customer will not be refunded any support services fees paid (including any annual or other set period fees), (b) the Customer will remain liable for all fees owing to the date of cancellation, and (c) the Customer will be subject to an early termination (acceleration) fee by way of liquidated damages and not as a penalty for lost support services fees revenue to SpeedLine as follows: (i) for support products and services paid for monthly (other than as part of a subscription Software license) cancelled before the end of the initial 12 months' term, the lesser of $600 or the remaining charges for the initial 12 months' term; and (ii) for support products and services paid for as part of a subscription Software license, the subscription fees owing for the remainder of the then current initial term (36 or 12 months, as the case may be) or 12 months' renewal term, as applicable. The termination fee will be processed on the day that the Customer notifies SpeedLine of the Customer's cancellation.

Source: Item 23 — RECEIPT (FDD pages 39–192)

What This Means (2025 FDD)

According to the 2025 Beggars Pizza FDD, franchisees are obligated to pay for support services provided by SpeedLine based on the terms outlined in their agreement. The specific support service plan chosen by the franchisee, such as Standard Support, Second-Level Support, or Per Incident Support, along with any optional services, will be detailed in a Quote. The franchisee's payment frequency (e.g., monthly or yearly) will also be indicated in the Quote, and this frequency must be consistent for all support products and services. Beggars Pizza franchisees are required to provide a credit card, debit card number, or pre-authorized debit account for payments. Monthly fees, including applicable taxes, are charged on the 25th (or the closest preceding business day) of each month.

Beggars Pizza franchisees must implement the necessary modem and communication software or Internet access interface, as specified by SpeedLine. They also need to provide user names, passwords, access codes, and access to necessary files and data required by SpeedLine's technical support personnel. If applicable, the franchisee's modem must have a designated telephone number with dial tone access for SpeedLine to connect for telephone support. Additionally, the franchisee must have a separate telephone line available for technical support service within reach of the computer needing support.

It is important to note that all support services fees are non-refundable. SpeedLine reserves the right to charge its standard fees for any payments returned due to insufficient funds or declined pre-authorized payments. The franchisee can cancel support services at the completion of a payment period, with at least one month's advance written notice for monthly services. However, cancellation may result in an early termination fee, especially if cancelled before the end of the initial 12-month term for support products and services paid monthly, potentially costing the franchisee the lesser of $600 or the remaining charges for the initial 12 months. For subscription Software licenses, cancellation fees may include subscription fees for the remainder of the current term.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.