What happens if a Beggars Pizza franchisee withdraws consent to withdrawals from their bank account?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee's failure to provide such information concerning the bank account required by this Section 3(d) or any new account, or Franchisee's withdrawal of consent to withdrawals for whatever reason and by whatever method, will be a breach of the Agreement.
Source: Item 23 — RECEIPT (FDD pages 39–192)
What This Means (2025 FDD)
According to the 2025 Beggars Pizza Franchise Disclosure Document, if a franchisee withdraws consent for electronic fund transfers (EFT) from their designated bank account, it will be considered a breach of the franchise agreement. Beggars Pizza requires franchisees to authorize the supplier to withdraw funds from their bank account via EFT for all payments due.
This requirement ensures that Beggars Pizza receives timely payments for products purchased by the franchisee. The franchisee is responsible for maintaining the EFT arrangement and must provide updated bank account information if they change banks or accounts. Failure to provide this information or withdrawing consent for withdrawals constitutes a breach of the agreement.
If a Beggars Pizza franchisee breaches the agreement by withdrawing consent, the supplier has the right to suspend or refuse further product shipments until payment is made. Additionally, the supplier may require the franchisee to make future payments on a cash-on-delivery basis. This could significantly impact the franchisee's ability to operate their Beggars Pizza restaurant, as they rely on a steady supply of products from the supplier.