What happens to any Beggars Pizza Brand Fund contributions not expended by the end of the fiscal year?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
We anticipate that all contributions to the Brand Fund will be expended for their intended purposes during the fiscal year in which the contributions are made. To the extent any contributions are not expended by the end of the applicable fiscal year, they will be expended no later than the end of the taxable year following the year of receipt. (Franchise Agreement, Section 12.5.4.) Although we intend that the Brand Fund will be of perpetual duration, we and our affiliates may terminate the Brand Fund in our discretion; however, the Brand Fund may not be terminated until all monies in the Brand Fund have been expended for advertising and/or promotional purposes or returned to contributors on the basis of their respective contributions. (Franchise Agreement, Section 12.5.5.) We will maintain separate bookkeeping accounts for the Brand Fund and may form an affiliated entity to control and administer the Brand Fund. The Brand Fund will not be audited. We will make available to you an annual accounting once per year of the Brand Fund's expenditures for the prior year upon your written request.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS, AND TRAINING (FDD pages 19–26)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, the brand intends to expend all Brand Fund contributions during the fiscal year in which they are received. However, if any contributions remain unspent at the end of the fiscal year, Beggars Pizza will expend them no later than the end of the following taxable year.
Beggars Pizza also retains the right to terminate the Brand Fund, although they intend for it to be of perpetual duration. If Beggars Pizza chooses to terminate the Brand Fund, all remaining monies must be used for advertising and promotional purposes or returned to the contributors based on their respective contributions.
Beggars Pizza will maintain separate bookkeeping accounts for the Brand Fund and provide an annual accounting of the Brand Fund's expenditures for the prior year upon a franchisee's written request. However, the Brand Fund will not be audited.