What happens upon the death or incapacity of a person with an interest in a Beggars Pizza franchise?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.6 Death or Incapacity. Upon the death or physical or mental incapacity of any person with an interest in the Agreement, in Franchisee, or in all or substantially all of the assets of the Restaurant, the executor, administrator, or personal representative of such person must transfer such interest to a third party approved by Franchisor within six (6) months after such death or incapacity. Such transfers including, without limitation, transfers by devise or inheritance will be subject to the same conditions as any inter vivos transfer. In the case of transfer by devise or inheritance, if the heirs or beneficiaries of any such person are unable to meet the conditions in this Section 14, the executor, administrator, or personal representative of the decedent must transfer the decedent's interest to another party approved by Franchisor within a reasonable time, which disposition will be subject to all the terms and conditions for transfers contained in the Agreement. If the interest is not disposed of within a reasonable time, Franchisor may terminate the Agreement pursuant to Section 15.2.7.
- 14.7 No Waiver. Franchisor's consent to a transfer of any interest in the Agreement, in Franchisee, or in all or substantially all of the assets of the Restaurant will not constitute a waiver of any claims it may have against the transferring party, nor will it be deemed a waiver of Franchisor's right to demand exact compliance with any of the terms of the Agreement by the transferor or transferee.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Beggars Pizza Franchise Disclosure Document, in the event of the death or physical or mental incapacity of someone with an interest in the Franchise Agreement, the franchisee, or the restaurant's assets, their representative (executor, administrator, etc.) must transfer the interest to a Franchisor-approved third party within six months. This transfer is subject to the same conditions as any transfer made during the person's life.
If the heirs or beneficiaries cannot meet these conditions, the representative must transfer the interest to another party approved by Beggars Pizza within a reasonable time, again subject to all transfer terms in the Franchise Agreement. If the interest isn't properly transferred within a reasonable timeframe, Beggars Pizza has the right to terminate the Franchise Agreement.
Beggars Pizza's consent to any transfer doesn't waive any claims they may have against the transferring party, nor does it waive their right to demand compliance with the agreement terms from either the transferor or the transferee. This ensures that Beggars Pizza maintains control over who operates its franchises and that all standards and obligations are continuously met, even in cases of death or incapacity.