Does the Beggars Pizza franchisor retain the right to use the Proprietary Marks?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.3.6 Except as specified in Section 1.3 hereof, the license of the Proprietary Marks granted hereunder to Franchisee is nonexclusive, and Franchisor and its affiliates thus have and retain the rights, without limitation, to (a) use the Proprietary Marks in connection with selling products and services, (b) grant other licenses for the Proprietary Marks, (c) develop and establish other systems using the Proprietary Marks, similar proprietary marks, or any other proprietary marks, and (d) grant licenses thereto without providing any rights to Franchisee; and
- 8.3.7 Franchisor may modify, add to, or discontinue use of the Proprietary Marks, or substitute different proprietary marks, for use in identifying the System and the businesses operating thereunder in Franchisor's sole discretion. Franchisee must promptly comply with such changes, revisions, and/or substitutions and bear all the costs of modifying Franchisee's signs, advertising materials, interior graphics, and any other items bearing the Proprietary Marks.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, the franchisor retains significant rights regarding the Proprietary Marks. Specifically, Beggars Pizza and its affiliates have the right to use the Proprietary Marks in connection with selling products and services, grant other licenses for the Proprietary Marks, develop and establish other systems using the Proprietary Marks or similar marks, and grant licenses to these systems without providing any rights to the franchisee. This means that while a franchisee is granted the right to use the Proprietary Marks to operate their Beggars Pizza restaurant, the franchisor maintains broad control and can utilize the marks in various ways beyond the individual franchise agreement.
This has several implications for prospective franchisees. Beggars Pizza can license the Proprietary Marks to other businesses, develop new Beggars Pizza concepts, or even sell products using the marks through different channels like supermarkets or online platforms. These activities could potentially compete with a franchisee's business, although the FDD also states that the franchisor will not establish or operate another Beggars Pizza restaurant within the franchisee's territory, with some exceptions.
Furthermore, Beggars Pizza can modify, add to, or discontinue the use of the Proprietary Marks, or substitute different proprietary marks. Franchisees are obligated to comply with these changes and bear the costs of modifying their signs, advertising materials, and other items bearing the Proprietary Marks. This clause gives Beggars Pizza considerable flexibility in evolving its brand identity, but it also places a financial burden on franchisees to keep their restaurants aligned with the current brand image.
In summary, while franchisees are granted a license to use the Proprietary Marks, Beggars Pizza retains extensive rights to use and modify these marks, as well as to license them to others. Prospective franchisees should carefully consider these factors and the potential impact on their business before investing in a Beggars Pizza franchise.