If a Beggars Pizza franchisee wants to outsource services related to the Required Software, what must they do?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.11 No Outsourcing Without Prior Written Approval.
Franchisee will not hire third party or outside vendors to perform any services or obligations in connection with the Computer System, Required Software, or any other of Franchisee's obligations without Franchisor's prior written approval.
Franchisor's consideration of any proposed outsourcing vendors may be conditioned upon, among other things, such third party or outside vendor's entry into a confidentiality agreement with Franchisor and Franchisee in a form that is provided by Franchisor.
The provisions of this Section 8.11 are in addition to and not instead of any other provision of the Agreement.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, a franchisee is not allowed to hire third-party or outside vendors to perform any services connected to the Computer System, Required Software, or any other obligations without first obtaining written approval from Beggars Pizza.
Beggars Pizza may require that any proposed outsourcing vendors enter into a confidentiality agreement with both Beggars Pizza and the franchisee. The specific form of this agreement will be provided by Beggars Pizza.
This requirement is in addition to any other provisions outlined in the franchise agreement, meaning that even if other sections of the agreement seem to allow for outsourcing in general, this specific clause regarding the Computer System and Required Software takes precedence. This ensures Beggars Pizza maintains control over critical systems and data security.