factual

Are Beggars Pizza franchisees required to contribute to the Brand Fund?

Beggars_Pizza Franchise · 2025 FDD

Answer from 2025 FDD Document

You must pay the Brand Fund a weekly fee of 1% of your Gross Sales for the preceding Accounting Period. Your contributions to the Brand Fund are in addition to the required grand opening and local advertising described above. (Franchise Agreement, Section 12.4.) Beggars Pizza® Restaurants owned and operated by us or our affiliates currently contribute to the Brand Fund in the same manner and at the same rates as franchised Beggars Pizza® Restaurants, but they are not required to do so.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 19–26)

What This Means (2025 FDD)

According to Beggars Pizza's 2025 Franchise Disclosure Document, franchisees are required to contribute to the Brand Fund. Specifically, franchisees must pay a weekly fee of 1% of their Gross Sales from the preceding accounting period. These contributions are in addition to any required grand opening and local advertising expenses.

Beggars Pizza Restaurants that are owned and operated by the company or its affiliates also contribute to the Brand Fund at the same rate as franchised locations, although they are not strictly required to do so. The Brand Fund is used for advertising, marketing, public relations, and promotional programs to enhance the image of the Beggars Pizza system. These programs include radio, television, print, and Internet-based advertising campaigns, as well as social media and other promotional tactics.

The FDD specifies that during the most recent fiscal year, 57% of Brand Fund expenditures were allocated to media placement, team sponsorships, and donations, 33% was spent on production, and 10% covered administrative and related expenses. The document also states that no Brand Fund fees were used for the solicitation of new franchise sales. Beggars Pizza uses third-party advertising agencies and in-house marketing personnel to conduct advertising. The Brand Fund is not audited, but Beggars Pizza will provide an annual accounting of the Brand Fund's expenditures for the prior year upon a franchisee's written request.

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.