Can the Beggars Pizza franchisor designate itself as the only approved supplier?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
- 7.4 Adherence to Standards and Specifications.
To ensure that the highest degree of quality and service is maintained, Franchisee 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:
- 7.4.1 Maintain in sufficient supply as Franchisor may prescribe in the Manual or otherwise in writing, and to use at all times, only such products and ingredients acquired from a supplier or suppliers designated or approved by Franchisor, and such other ingredients, products, materials, supplies, paper goods, fixtures, furnishings, equipment, signs and menu items, as conform with Franchisor's standards and specifications, and to refrain from deviating therefrom by the use of nonconforming items, without Franchisor's prior written consent.
Franchisor may designate itself or an affiliate to be an approved supplier, or the only approved supplier, of any products or other items;
- 7.4.2 Sell or offer for sale only such menu items, and other products and services as have been expressly approved for sale in writing by Franchisor; to sell or offer for sale all types of menu items, and other products and services specified by Franchisor; to refrain from any deviation from Franchisor's standards and specifications without Franchisor's prior written consent; and to discontinue selling and offering for sale any menu items, or other products or services which Franchisor may, in its discretion, disapprove in writing at any time.
Any time Franchisor notifies Franchisee that an item will become an approved product, or that an item will no longer be an approved product, Franchisor will include a deadline by which Franchisee must offer such approved product for sale, or must cease selling the item that is no longer an approved product.
The deadline will be at least ninety (90) days after Franchisor gives Franchisee the notice, in the case of a new approved product, and at least thirty (30) days after Franchisor gives Franchisee the notice, in the case of a product that is no longer an approved product; and
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, Beggars Pizza has the authority to designate itself or an affiliate as the sole approved supplier for products and other items. This means that Beggars Pizza franchisees may be required to purchase certain or all products, equipment, and merchandise exclusively from Beggars Pizza or its affiliated company.
This requirement ensures uniformity and quality control across all Beggars Pizza locations, as franchisees must adhere to the standards and specifications set by Beggars Pizza. Franchisees are obligated to maintain a sufficient supply of products and ingredients acquired from approved suppliers and must refrain from using nonconforming items without prior written consent from Beggars Pizza. Beggars Pizza also has the right to approve or disapprove any menu items or other products and services offered for sale at the restaurants.
Beggars Pizza will provide franchisees with a deadline to comply with changes in approved products. For new approved products, the deadline will be at least 90 days after the notice. For products that are no longer approved, the deadline will be at least 30 days after the notice. This allows franchisees time to adjust their inventory and offerings accordingly.
This arrangement allows Beggars Pizza to maintain consistency and quality across its franchise system, while franchisees must adhere to the approved supplier list, potentially impacting their costs and sourcing options. Prospective franchisees should carefully consider these requirements and discuss any concerns with Beggars Pizza before entering into a franchise agreement.