If a Beggars Pizza franchisee operates another business after termination, what is prohibited regarding Proprietary Marks?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
other agreement, will be deemed to be a default of the Agreement, and Franchisor will have the right, at its option, to terminate the Agreement without affording Franchisee an opportunity to cure effective immediately upon notice to Franchisee.
16. OBLIGATIONS UPON TERMINATION OR EXPIRATION
Upon termination or expiration of the Agreement, all rights granted hereunder to Franchisee will forthwith terminate, and:
- 16.1 Cease Operations. Franchisee must immediately cease to operate the Restaurant, and will not thereafter, directly or indirectly, represent to the public or hold itself out as a present or former franchisee of Franchisor. Immediately upon the expiration or termination hereof, Franchisee must dispose of, and not sell, any proprietary or trade secret products sold hereunder including, without limitation, any products bearing the Proprietary Marks or contained in packaging bearing the Proprietary Marks.
- 16.2 Cease Use of Confidential Information and Marks. Franchisee must immediately and permanently cease to use, in any manner whatsoever, any confidential methods, procedures and techniques associated with the System; any Confidential Information;
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Beggars Pizza Franchise Disclosure Document, after the termination or expiration of the franchise agreement, a franchisee must immediately and permanently cease all use of the Proprietary Marks. This includes the brand name "Beggars Pizza®" and all other Proprietary Marks, distinctive forms, slogans, signs, symbols, and devices associated with the Beggars Pizza system. The franchisee is prohibited from using these marks in any manner whatsoever.
Specifically, the franchisee must stop using all signs, advertising materials, displays, stationery, forms, products, and any other items that display the Proprietary Marks. This means a former franchisee cannot rebrand their restaurant or any other business using any of Beggars Pizza's trademarks, logos, or other identifying marks.
Furthermore, the franchisee is obligated to cancel any assumed name registrations or equivalent registrations that include the "Beggars Pizza®" mark or any other Proprietary Marks. The franchisee must provide Beggars Pizza with evidence of compliance with this requirement within five days of termination or expiration of the agreement. This ensures that the former franchisee completely disassociates themselves from the Beggars Pizza brand, preventing any potential confusion or misuse of the brand's identity.