What happens if a Beggars Pizza franchisee fails to comply with premises modification requirements after termination?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.4 Assignment of Lease. Franchisee must, at Franchisor's option, assign to Franchisor any interest which Franchisee has in any lease or sublease for the Premises. If Franchisor does not elect to exercise its option to acquire the lease or sublease for the Premises, Franchisee must make such modifications or alterations to the premises immediately upon termination or expiration of the Agreement as may be necessary to distinguish the appearance of the premises from that of the Restaurant under the System, and must make such specific additional changes thereto as Franchisor may reasonably request for that purpose. If Franchisee fails or refuses to comply with the requirements of this Section 16.4, Franchisor will have the right to enter upon the premises
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, upon termination or expiration of the franchise agreement, a franchisee is required to make modifications or alterations to the premises to distinguish its appearance from a Beggars Pizza restaurant. These changes should be made immediately after the agreement ends and include any specific changes reasonably requested by Beggars Pizza.
If the franchisee fails or refuses to comply with these modification requirements, Beggars Pizza has the right to enter the premises to make the necessary changes. This provision allows Beggars Pizza to ensure that the public will not confuse the terminated franchise with an active Beggars Pizza location, protecting the brand's image and reputation.
This requirement is fairly standard in the franchise industry, as franchisors typically want to prevent any potential confusion or misrepresentation after a franchise agreement ends. It is important for a prospective Beggars Pizza franchisee to understand these obligations and be prepared to comply with them should the franchise agreement terminate.