Can the Beggars Pizza Franchisor establish a Beggars Pizza restaurant outside the Franchisee's Territory?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as otherwise provided in the Agreement, Franchisor will not establish or operate, nor license any other person to establish or operate, a Beggars Pizza® restaurant under the System and the Proprietary Marks at any location within the territory described in Exhibit A ("Franchisee's Territory"), during the term of the Agreement.
Franchisor and its affiliates further retain the rights, among others, on any terms and conditions Franchisor deems advisable, and without granting Franchisee any rights therein:
1.3.1 To establish and operate, and license others to establish and operate, a Beggars Pizza® restaurant under the System and the Proprietary Marks at any location outside Franchisee's Territory;
1.3.2 To accept delivery orders and deliver, and allow other franchisees to accept delivery orders and deliver, any products (including, without limitation, products sold at the Restaurant) in Franchisee's Territory;
1.3.3 To establish and operate, and license other parties to establish and operate, Beggars Pizza® restaurants under the System and Proprietary Marks in Franchisee's Territory at any existing or future (a) shopping malls, (b) airports, (c) bus and train depots and other transportation terminals, (d) entertainment facilities (including, without limitation, sports stadiums) and theme parks, and (e) rest stops, plazas, and similar locations accessible from limited access highways;
1.3.4 To directly or indirectly sell or distribute, or license others to sell or distribute, products that are the same as or similar to those offered under the System and any other products or services at any location other than a Beggars Pizza® restaurant (notwithstanding its proximity to the Approved Location) whether within or outside Franchisee's Territory under the same or different Proprietary Marks including, without limitation, sales made at supermarkets,
convenience stores, markets, and grocery stores, and over the Internet and/or other on-line networks and other communications methods now or hereafter devised of any nature whatsoever;
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 right to establish or license others to establish and operate a Beggars Pizza restaurant under the System and the Proprietary Marks at any location outside the franchisee's territory. This means that while a franchisee is granted a specific territory, Beggars Pizza retains the right to expand its brand beyond those boundaries.
This could impact a franchisee's business if a new Beggars Pizza location opens nearby, even if it's technically outside their territory. The FDD also states that Beggars Pizza and its affiliates retain the rights to sell or distribute products similar to those offered under the System at any location other than a Beggars Pizza restaurant, whether within or outside the franchisee's territory. This includes sales made at supermarkets, convenience stores, and over the Internet.
Beggars Pizza also retains the right to establish and operate, and license other parties to establish and operate, Beggars Pizza restaurants within the franchisee's territory at locations such as shopping malls, airports, transportation terminals, entertainment facilities, and rest stops accessible from limited access highways. This indicates that the franchisee's territory may not be completely exclusive, as Beggars Pizza can establish additional locations within it under certain circumstances. A prospective franchisee should carefully consider these factors and evaluate the potential impact of such actions on their business before investing in a Beggars Pizza franchise.