What happens if a Beggars Pizza franchisee's Gross Sales report is overdue?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Any report not actually received by Franchisor on or before the due date will be deemed overdue.
If a report is overdue, all payments to Franchisor for that Accounting Period, whether or not timely received, will be deemed overdue until such time as Franchisor has received the required report, and late charges will be due as provided in Section 4.5.
Franchisor may access any business information or data collected and generated on Franchisee's point of sale system.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, if a franchisee's Gross Sales report is not received by the due date, it will be considered overdue. In this case, all payments to Beggars Pizza for that accounting period, regardless of whether they were submitted on time, will also be deemed overdue until the required report is received.
Furthermore, the franchisee will be subject to late charges as outlined in Section 4.5 of the agreement. Section 4.5 states that if any payment or Gross Sales report is overdue, the franchisee must pay Beggars Pizza immediately upon demand, in addition to the overdue amount, a "late charge" on such amount from the date it was due until received by Franchisor, at the rate of two percent (2%) per month on the overdue amount, or the maximum rate permitted by applicable law.
This late charge is in addition to any other remedies that Beggars Pizza may pursue. The franchisee is not entitled to offset any payments required under Section 4 against any monetary claim they may have against Beggars Pizza. Beggars Pizza also retains the right to require the franchisee to make payments to an affiliate of Beggars Pizza.