What happens to all payments to Beggars Pizza if a report is overdue?

According to Beggars Pizza's 2025 Franchise Disclosure Document, if a required report is overdue, all payments to Beggars Pizza for that accounting period, regardless of whether they were initially submitted on time, will be considered overdue. This condition remains in effect until Beggars Pizza receives the required report.

This means that even if a franchisee makes their regular payments promptly, the failure to submit a timely report will trigger late payment penalties on all amounts due for that period. The franchisee will incur late charges as provided in Section 4.5 of the franchise agreement.

Section 4.5 specifies 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 Beggars Pizza, at a rate of two percent (2%) per month on the overdue amount, or the maximum rate permitted by applicable law. This late charge applies to all payments for the accounting period, not just the specific payment associated with the overdue report.

This policy underscores the importance of submitting all required reports on time to avoid incurring additional fees and penalties. A prospective franchisee should ensure they understand the reporting requirements and have systems in place to meet those deadlines to avoid these charges from Beggars Pizza.