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Does Beggars Pizza franchisor reserve the right to change the Accounting Period?

Beggars_Pizza Franchise · 2025 FDD

Answer from 2025 FDD Document

Each Monday Franchisee must pay to Franchisor all amounts due to Franchisor for the previous Monday through Sunday (i.e., the previous Accounting Period) via electronic funds transfer ("EFT") as set forth in Section 4.6 and Section 4.7.

Franchisor hereby expressly reserves the right to designate such other period (which may include a shorter period) as the Accounting Period that Franchisor may specify in the Manual or in writing from time to time.

Source: Item 22 — CONTRACTS (FDD page 39)

What This Means (2025 FDD)

According to Beggars Pizza's 2025 Franchise Disclosure Document, the franchisor does reserve the right to change the accounting period. Currently, franchisees must pay all amounts due to Beggars Pizza for the previous Monday through Sunday (the current Accounting Period) each Monday via electronic funds transfer. However, Beggars Pizza expressly reserves the right to designate another period, which may include a shorter period, as the Accounting Period. Beggars Pizza may specify this change in the Manual or in writing.

This means that Beggars Pizza franchisees must be prepared for the possibility of more frequent payments to the franchisor if the accounting period is shortened. This could impact a franchisee's cash flow management, as they would need to ensure funds are available more regularly to cover these payments. It is important for prospective franchisees to understand the potential implications of such changes and how they might affect their business operations.

While the FDD specifies that Beggars Pizza can change the accounting period, it does not provide details on how often they might do so or what factors would trigger such a change. Therefore, it would be prudent for potential franchisees to discuss this with the franchisor during their due diligence to gain a better understanding of the circumstances under which the accounting period might be altered.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.