If my Beggars Pizza franchise is terminated for default, does Beggars Pizza have a lien against my personal property?

According to Beggars Pizza's 2025 Franchise Disclosure Document, if the franchise agreement is terminated due to the franchisee's default, Beggars Pizza will have a lien against the franchisee's personal property. This lien extends to personal property, furnishings, equipment, signs, fixtures, and inventory owned by the franchisee at the time of default. This lien remains in effect until all outstanding sums, damages, costs, and expenses, including reasonable attorneys' fees incurred by Beggars Pizza due to the default, are paid in full.

This means that if a Beggars Pizza franchisee fails to meet their obligations under the franchise agreement and the agreement is terminated as a result, Beggars Pizza can claim a legal right against the franchisee's business assets to cover any outstanding debts and expenses. This could involve seizing and selling the franchisee's assets to recover the amounts owed.

This is a significant risk for franchisees, as it puts their business assets at stake if they default on the franchise agreement. Franchisees should ensure they fully understand their obligations and the potential consequences of default. It is also important to note that this lien is in addition to any other damages or payments the franchisee may be required to pay upon termination, such as liquidated damages.