What is the geographic scope of a Beggars Pizza territory?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. However, you will receive a territory (a "Territory") that will be described in Exhibit A of your Franchise Agreement. Your Territory will be determined by us in our sole discretion as we consider appropriate under the circumstances and will generally be a geographic area described by attaching a map, or by reference to streets, natural boundaries, or ZIP codes. We may permit you to operate a temporary cart or kiosk at a temporary location in your Territory used for fund raising and other special events.
Source: Item 12 — TERRITORY (FDD pages 26–28)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, franchisees will not receive an exclusive territory. The territory, as detailed in Exhibit A of the Franchise Agreement, is determined at Beggars Pizza's discretion. The territory is generally a geographic area described by attaching a map, or by reference to streets, natural boundaries, or ZIP codes. Beggars Pizza may allow franchisees to operate temporary carts or kiosks at temporary locations within their territory for fundraising and special events.
Even within the assigned territory, franchisees may face competition from other franchisees, outlets owned by Beggars Pizza, other distribution channels, or competitive brands controlled by Beggars Pizza. Beggars Pizza retains significant rights within and outside the territory, including the right to establish and operate Beggars Pizza restaurants in locations such as shopping malls, airports, transportation terminals, entertainment facilities, and rest stops. They can also sell products similar to those offered under the Beggars Pizza system through other channels like supermarkets, convenience stores, and the internet, without compensating the franchisee.
Beggars Pizza also reserves the right to acquire and operate any business under different proprietary marks, even if it offers similar products or uses the same marks, within or outside the franchisee's territory. This includes merging with or acquiring other businesses. The franchisee is obligated to provide delivery service to customers within their territory according to Beggars Pizza's standards, but these delivery rights are not exclusive, and other Beggars Pizza restaurants may also provide delivery services within the same territory. Franchisees can accept orders and provide delivery service outside their territory, except in specific areas defined in the Franchise Agreement, but are restricted from distributing hard copy advertisements outside their territory.
Prospective franchisees should carefully review Exhibit A of the Franchise Agreement to fully understand the specific geographic boundaries of their territory and the potential for competition within that area. They should also inquire about Beggars Pizza's plans for alternative distribution channels and the potential impact on their business. Understanding these territorial rights and limitations is crucial for assessing the potential profitability and risks associated with a Beggars Pizza franchise.