What must I do if I change banks or accounts for my Beggars Pizza franchise?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Beggars Pizza's 2025 Franchise Disclosure Document, if a franchisee changes banks or accounts for the required bank account, they must provide information about the new account and authorization to make withdrawals from it before the change occurs. This ensures that Beggars Pizza can continue to receive payments via electronic funds transfer (EFT) without interruption. The designated bank account must be located within the United States and governed by its laws.
Maintaining a designated bank account is a requirement for operating a Beggars Pizza restaurant. Franchisees are obligated to deposit all revenues from the restaurant into this account within two days of receipt, including cash, checks, credit card receipts, and other forms of payment. This account is crucial for facilitating the EFT arrangement, which is the standard method for franchisees to pay Beggars Pizza for products purchased.
Failure to provide the necessary information about the bank account or withdrawing consent for withdrawals constitutes a breach of the franchise agreement. Such a breach can lead to serious consequences, including the suspension of product shipments. Beggars Pizza may refuse to ship additional products until the franchisee provides the required bank account information and authorization, or they may require future shipments to be paid on a cash-on-delivery basis. This highlights the importance of adhering to the payment terms and maintaining open communication with Beggars Pizza regarding any changes to the designated bank account.