What happens if a Beggars Pizza franchisee receives a health code violation notice?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
its lease or sublease for the Premises, or in any way jeopardizes its right to renewal of such lease or sublease;
- 15.3.7 If Franchisee engages in any business or markets any service or product under a name or mark which, in Franchisor's opinion, is confusingly similar to the Proprietary Marks;
- 15.3.8 If Franchisee receives any citation or notice of potential health code violation from the local board of health or Franchisor;
- 15.3.9 If Franchisee fails to provide delivery services within Franchisee's Territory as required by Section 7.5;
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Beggars Pizza Franchise Disclosure Document, receiving a citation or notice of a potential health code violation from the local board of health or from Beggars Pizza itself constitutes an event of default under the Franchise Agreement.
This means that if a franchisee receives such a notice, they could be in violation of their agreement with Beggars Pizza. Item 15.3 outlines several conditions that constitute a failure to comply with the agreement. If the franchisee fails to address and resolve the health code violation, Beggars Pizza has the right to suspend product shipments to the franchisee, according to section 15.4.
This clause underscores the importance of maintaining high standards of cleanliness and adhering to health codes. For a prospective Beggars Pizza franchisee, this highlights the need to prioritize food safety and hygiene to avoid potential defaults and penalties under the franchise agreement. It also emphasizes the franchisee's responsibility to act promptly and decisively to correct any violations to avoid further repercussions from the franchisor.