What happens to the Beggars Pizza supplier agreement if the Franchise Agreement is terminated?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
The Agreement will become effective on the Agreement Date and, except as otherwise provided in the Agreement, will remain in full force and effect until the sooner of the expiration or termination of the Franchise Agreement (the "Term"). The Agreement will automatically terminate upon the termination of the Franchise Agreement.
Source: Item 23 — RECEIPT (FDD pages 39–192)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, the supplier agreement's term is directly linked to the Franchise Agreement. Specifically, the supplier agreement remains effective until the earlier of its expiration or the termination of the Franchise Agreement. Upon the termination of the Franchise Agreement, the supplier agreement automatically terminates.
This means that if a Beggars Pizza franchisee's agreement is terminated for any reason, the agreement with the designated supplier also ends immediately. The franchisee would no longer be obligated to purchase supplies from that supplier, but also loses the right to receive supplies under the terms negotiated in that agreement. This could impact the franchisee's ability to operate if they cannot secure a new supply agreement promptly.
This condition underscores the importance of maintaining a good standing with Beggars Pizza, as any issues leading to the termination of the Franchise Agreement will also disrupt the supply chain established through the supplier agreement. Prospective franchisees should carefully consider the implications of this interconnectedness and ensure they understand the conditions under which their Franchise Agreement could be terminated.