If Beggars Pizza does not exercise its option to acquire the lease, what is the franchisee required to do to the premises?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.4 Assignment of Lease. Franchisee must, at Franchisor's option, assign to Franchisor any interest which Franchisee has in any lease or sublease for the Premises. If Franchisor does not elect to exercise its option to acquire the lease or sublease for the Premises, Franchisee must make such modifications or alterations to the premises immediately upon termination or expiration of the Agreement as may be necessary to distinguish the appearance of the premises from that of the Restaurant under the System, and must make such specific additional changes thereto as Franchisor may reasonably request for that purpose. If Franchisee fails or refuses to comply with the requirements of this Section 16.4, Franchisor will have the right to enter upon the premises
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Beggars Pizza Franchise Disclosure Document, if Beggars Pizza does not elect to acquire the lease or sublease for the premises upon termination or expiration of the franchise agreement, the franchisee is responsible for making modifications or alterations to the premises. These changes must be made immediately after the termination or expiration of the agreement and must be sufficient to distinguish the appearance of the location from that of a Beggars Pizza restaurant operating under the Beggars Pizza system.
Furthermore, the franchisee must make any specific additional changes that Beggars Pizza may reasonably request for this purpose. This ensures that the public will not confuse the former Beggars Pizza location with a current, operating franchise, thereby protecting the Beggars Pizza brand and image.
If the franchisee fails or refuses to comply with these requirements, Beggars Pizza retains the right to enter the premises to make the necessary changes themselves. This provision underscores the importance of the franchisee's obligation to re-brand or alter the premises to avoid any confusion or misrepresentation after the franchise agreement ends.