What geographic areas are covered by the post-term covenant for a Beggars Pizza franchise?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
- 17.2.2 Own, maintain, operate, engage in, be employed by, provide any assistance or advice to, or have any interest in (as owner or otherwise) any business that offers or sells pizza, pizza products, Italian-style food, or other food items that are the same as or similar to the products being offered by the Restaurant under the System.
- 17.3 Post-Term Covenants. Franchisee covenants that, except as otherwise approved in writing by Franchisor, Franchisee will not, for a continuous uninterrupted period of two (2) years commencing upon the date of (a) a transfer permitted under Section 14, (b) expiration of the Agreement, (c) termination of the Agreement regardless of the cause for termination, (d) a final order of a duly authorized arbitrator, pane
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
The 2025 Beggars Pizza Franchise Disclosure Document outlines post-term covenants that restrict a franchisee's activities after the franchise agreement ends. Specifically, for a period of two years after the agreement's expiration, termination, or transfer, the franchisee is restricted from engaging in any business that offers or sells pizza, pizza products, Italian-style food, or other similar food items to those offered by Beggars Pizza.
However, the FDD excerpts provided do not specify the geographic scope of these post-term covenants. While the agreement restricts franchisees from operating competing businesses, the documents do not state whether this restriction applies only within the franchisee's territory, a specific radius around the former Beggars Pizza location, or some other defined area.
Therefore, a prospective Beggars Pizza franchisee should seek clarification from the franchisor regarding the geographic limitations of the post-term covenant. Understanding the specific geographic area covered by this restriction is crucial for assessing potential future business opportunities after the franchise agreement concludes. It is important to determine if the restriction would prevent the franchisee from operating a similar business in their local area or if it extends to a broader region.