Does the Beggars Pizza franchisor have sole discretion in approving or disapproving a site?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Prior to Franchisee's acquisition by lease or purchase of a site for the Restaurant, Franchisee must submit to Franchisor, in the form specified by Franchisor, a completed site review form, such other information or materials as Franchisor may reasonably require, and a letter of intent or other evidence satisfactory to Franchisor which confirms Franchisee's favorable prospects for obtaining the proposed site. Recognizing that time is of the essence, Franchisee must submit a proposed site, together with the information and materials required by this Paragraph 4, to Franchisor for its approval within sixty (60) days after execution of this Site Selection Addendum. Franchisor will have thirty (30) days after receipt of such information and materials from Franchisee to approve or disapprove the site as a location for the Restaurant in Franchisor's sole discretion. No proposed site will be deemed approved unless it has been expressly approved in writing by Franchisor.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, the franchisor has sole discretion in approving or disapproving a site. Specifically, within 60 days after executing the Site Selection Addendum, the franchisee must submit a proposed site to Beggars Pizza for approval. The franchisor then has 30 days to approve or disapprove the site in its sole discretion. The FDD states clearly that no proposed site is considered approved unless Beggars Pizza expressly approves it in writing.
This means that a prospective Beggars Pizza franchisee does not have the final say in where their restaurant will be located. Beggars Pizza retains the right to reject a site the franchisee has identified, even after the franchisee has conducted their own research and due diligence. This could potentially lead to delays in opening the franchise if the initial site is rejected and the franchisee needs to find an alternative location.
However, the FDD also states that Beggars Pizza will furnish site selection guidelines and consultation as it deems advisable, and may conduct on-site evaluations. While the franchisor's approval indicates only that the site meets its minimum criteria at the time of evaluation, franchisees should note that Beggars Pizza is not responsible if an approved site fails to meet the franchisee's revenue or operational expectations. Ultimately, the franchisee acknowledges that their acceptance of the site is based on their own independent investigation of its suitability.