What happens to the rebates generated by affiliate-owned Beggars Pizza locations?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
isee purchases. In the year ending December 31, 2024, Begcom derived approximately $6,398,528 in revenue from the sale of approved products to our franchisees and our affiliateowned Beggars Pizza® Restaurants. Beg Adv, Inc. derived approximately $252,148 in rebates or commissions from required franchisee purchases and affiliate-owned Beggars Pizza® Restaurant
purchases from our designated and approved suppliers; specifically, it received rebates for purchases of sodas (approximately $3.00 per gallon), food and paper products (flat fee ranging from approximately $1.00 to $7.00), meat and other pizza toppings ($0.10 per pound), and pizza sauce ($1.00 to $1.50 per case).
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 15–18)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, rebates generated by affiliate-owned locations are contributed to the Brand Fund. In the year ending December 31, 2024, Beg Adv, Inc. derived approximately $252,148 in rebates or commissions from required franchisee purchases and affiliate-owned Beggars Pizza® Restaurant purchases from designated and approved suppliers. These rebates came from purchases of sodas (approximately $3.00 per gallon), food and paper products (flat fee ranging from approximately $1.00 to $7.00), meat and other pizza toppings ($0.10 per pound), and pizza sauce ($1.00 to $1.50 per case).
The Brand Fund, operated by Beg Adv, Inc., is the recipient of all rebates, including those generated by affiliate-owned Beggars Pizza locations. This fund is further described in Item 11 of the FDD. Laurance Garetto and Cheryl Garetto own an interest in Begcom.
For a prospective franchisee, this means that a portion of their purchases from approved suppliers contributes to a fund that is intended to benefit the Beggars Pizza brand as a whole. It also indicates that affiliate-owned locations contribute to this fund as well, suggesting a unified approach to brand development and marketing. Franchisees should review Item 11 of the FDD to understand how the Brand Fund is used and managed.