Can the Beggars Pizza franchisor modify prices from time to time?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
LLC, an Illinois limited liability company located at | | | | | | | | | 12949 South California Avenue, Blue Island, Illinois 60406 ("Franchisor"); and | | | | | | | | | , a | | | | | | | | | located at | | | | ("Franchisee"). | | | |
WITNESSETH:
WHEREAS, Franchisor, as the result of the expenditure of time, skill, effort, and money, has developed, and continues to develop, a distinctive system relating to the establishment, operation, and promotion of Beggars Pizza® restaurants that offer pizza, other food products, and non-alcoholic and alcoholic beverages for sale and consumption on the premises, for carry-out sale to customers, for consumption off the premises, for delivery to customers, for catering, for sale and consumption off the premises at temporary locations for fundraising and other special events, and sales in such other ways as Franchisor may specify from time to time, all of which may be changed, improved, and further developed by Franchisor from time to time (the "System");
WHEREAS, the distinguishing characteristics of the System include, without limitation, distinctive exterior and interior design, décor, color scheme, fixtures, and furnishings; standards and specifications for products and supplies; uniform standards, specifications, and procedures for operations; procedures for screening, recruiting and training personnel; payroll and bookkeeping procedures and policies; training and assistance; marketing methods; and advertising and promotional programs; all of which may be changed, improved and further developed by Franchisor from time to time;
WHEREAS, the System is identified by means of certain trade names, service marks, trademarks, trade dress, logos, emblems, and indicia of origin including, without limitation, the mark "Beggars Pizza®" and mark "Beggars Pizza (plus logo)" as are now designated and may hereafter be designated by Franchisor in writing for use in connection with the System (the "Proprietary Marks");
WHEREAS, Franchisor has developed and sells through its affiliate, Begcom LLC ("Begcom"), certain trade secret food ingredients for use in the System including, without limitation, pizza dough, spaghetti and pizza sauces, sausage, and secret spice blends, and may develop additional trade secret food ingredients during the term hereof from time to time;
WHEREAS, Franchisee desires to enter into the business of operating a Beggars Pizza® restaurant under the System and Proprietary Marks, and wishes to enter into an agreement with Franchisor for that purpose, and to receive the training and other assistance provided by Franchisor in connection therewith; and
WHEREAS, Franchisee understands and acknowledges the importance of Franchisor's high standards of quality, cleanliness, appearances, and service and the necessity of operating the business franchised hereunder in conformity with Franchisor's standards and specifications.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
Based on the 2025 Beggars Pizza Franchise Disclosure Document, the franchisor can modify aspects of the Beggars Pizza system from time to time. Specifically, the franchise agreement states that the Beggars Pizza system, including elements like standards and specifications for products and supplies, uniform operational procedures, marketing methods, and advertising and promotional programs, may be changed, improved, and further developed by Beggars Pizza from time to time.
Additionally, Beggars Pizza can prescribe participation in promotional programs, including gift card, loyalty, and coupon programs, as well as online ordering programs, as outlined in the manual or in writing. This includes the use and acceptance of coupons and gift cards, which may require the franchisee to transfer gift card revenue to a centralized account controlled by Beggars Pizza or a third party.
While the FDD excerpts indicate that Beggars Pizza can modify various aspects of the system and promotional programs, the documents do not explicitly state whether Beggars Pizza has the power to directly modify the prices that franchisees charge customers. A prospective franchisee should seek clarification from the franchisor regarding pricing control and any potential impact on the franchisee's revenue and profitability.