If applicable, what deposit is required from a Beggars Pizza franchisee?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon execution of the Agreement, Franchisee must execute Exhibit B attached hereto and furnish to Supplier the bank and account number, a voided check from such bank account, and written authorization for Supplier to withdraw funds from the bank account via EFT without further consent or authorization for all payments payable by Franchisee to Supplier hereunder.
Franchisee must execute any documents as may be necessary to effectuate and maintain the EFT arrangement as required by Supplier.
Franchisee must pay all costs associated with any such transfer.
If Franchisee changes banks or accounts for the bank account required by this Section
- 3(d), Franchisee must, prior to such change, provide such information concerning the new account and an authorization to make withdrawals therefrom.
Franchisee's failure to provide such information concerning the bank account required by this Section 3(d) or any new account, or Franchisee's withdrawal of consent to withdrawals for whatever reason and by whatever method, will be a breach of the Agreement.
Source: Item 23 — RECEIPT (FDD pages 39–192)
What This Means (2025 FDD)
According to the 2025 Beggars Pizza Franchise Disclosure Document, upon executing the agreement with the supplier, a franchisee must furnish the bank and account number, a voided check from such bank account, and written authorization for the supplier to withdraw funds from the bank account via EFT without further consent or authorization for all payments payable by franchisee to supplier.
This means that while there isn't a traditional deposit, Beggars Pizza requires franchisees to set up an electronic funds transfer (EFT) system with the supplier to ensure payments are made promptly. The franchisee is responsible for all costs associated with these transfers. This arrangement allows the supplier to automatically withdraw payments owed for products purchased by the franchisee.
If a franchisee changes banks or accounts, they must provide the new account information and authorization to the supplier before the change. Failure to provide this information or withdrawing consent for EFT withdrawals constitutes a breach of the agreement. This EFT arrangement ensures that Beggars Pizza suppliers are paid in a timely manner for the products they provide to the franchise locations.