What is the Beggars Pizza franchisee's responsibility regarding insurance during shipment and delivery of the equipment and on-premises implemented software?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
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SpeedLine System Purchase Agreement
- by pre-authorized credit or debit card, account debit, certified cheque, cashier's check, bank draft, money order or other means approved in writing in advance by SpeedLine. If the Customer pays by credit card or debit card, the amount required to be paid by SpeedLine to the credit card or debit card issuer will be added to the amount required to be paid by the Customer to SpeedLine hereunder.
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- SHIPPING, HANDLING AND INSURANCE: The Customer is responsible to pay for shipping, handling and insurance in respect of the supply of the equipment and on-premises implemented software to the Customer by SpeedLine, F.O.B. SpeedLine's designated supply facility in Abbotsford, British Columbia or Lynden, Washington, as the case may be. SpeedLine will pack the equipment and (where applicable) on-premises implemented software for shipment in accordance with standard packing and shipping practices for such items. The risk of loss or damage will pass to the Customer upon delivery of the equipment and (where applicable) on-premises implemented software to the common carrier. Title to the equipment (but not the software) will pass to the Customer on the later of delivery to the common carrier or payment of all amounts owing as described herein.
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Source: Item 23 — RECEIPT (FDD pages 39–192)
What This Means (2025 FDD)
According to the 2025 Beggars Pizza Franchise Disclosure Document, the franchisee, referred to as the Customer, is responsible for covering the costs of shipping, handling, and insurance for the equipment and on-premises software supplied by SpeedLine. This responsibility begins F.O.B. (Free On Board) at SpeedLine's designated supply facility, located in either Abbotsford, British Columbia, or Lynden, Washington. This means that once the equipment and software leave SpeedLine's facility, the franchisee assumes responsibility for any potential loss or damage during transit.
Specifically, Beggars Pizza franchisees are liable for all amounts owed to SpeedLine, including the costs of shipping, handling, and insurance during the shipment and delivery of the equipment and software. These costs, if not known at the time of signing the agreement, will be invoiced by SpeedLine and must be paid by the franchisee by the due date indicated on the invoice, based on SpeedLine's standard invoicing terms. The risk of loss or damage to the equipment transfers to the franchisee upon delivery to the common carrier.
In practical terms, this means a prospective Beggars Pizza franchisee needs to budget not only for the equipment and software itself but also for the associated shipping, handling, and insurance expenses. They should also confirm the location of SpeedLine's supply facility to estimate shipping costs accurately. Furthermore, the franchisee should ensure they have adequate insurance coverage to protect against potential losses or damages during shipping, as the risk shifts to them once the equipment is handed over to the carrier. This is a standard practice in many franchise systems, where the franchisee bears the responsibility for these logistical costs and risks.