Can the Beggars Pizza franchisor choose its own legal counsel in a dispute?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Nothing herein will preclude Franchisor from choosing its own legal counsel to represent it in any lawsuit, arbitration, or other dispute resolution.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, the franchisor retains the right to choose its own legal counsel in any legal proceedings involving the franchisee. Specifically, the franchise agreement states that nothing will prevent Beggars Pizza from selecting its own legal representation in lawsuits, arbitrations, or other dispute resolution processes.
This clause is significant for prospective franchisees because it clarifies that in the event of a legal dispute, Beggars Pizza has the autonomy to select its legal counsel. This ensures that the franchisor can be represented by attorneys who are familiar with the Beggars Pizza system and the specifics of the franchise agreement.
For a franchisee, this means they will likely be responsible for their own legal costs and representation, regardless of the outcome of the dispute. It is a standard practice in franchising for each party to bear their own legal expenses, and this clause reinforces that understanding. Franchisees should factor in potential legal costs when assessing the overall financial viability of investing in a Beggars Pizza franchise.