factual

If a Beggars Pizza restaurant is damaged, how long does the franchisee have to complete repairs or reconstruction before it's considered a default?

Beggars_Pizza Franchise · 2025 FDD

Answer from 2025 FDD Document

However, if, through no fault of Franchisee, the Restaurant is damaged or destroyed by an event such that repairs or reconstruction cannot be completed within sixty (60) days thereafter, then Franchisee will have thirty (30) days after such event in which to apply for Franchisor's approval to relocate and/or reconstruct the Restaurant, which approval will not he unreasonably withheld;

Source: Item 22 — CONTRACTS (FDD page 39)

What This Means (2025 FDD)

According to the 2025 Beggars Pizza Franchise Disclosure Document, if a Beggars Pizza restaurant is damaged or destroyed through no fault of the franchisee, such that repairs or reconstruction cannot be completed within sixty days, the franchisee has thirty days after the event to apply for the Franchisor's approval to relocate and/or reconstruct the restaurant. This approval will not be unreasonably withheld.

This clause protects the franchisee from being immediately penalized if an unforeseen event damages the restaurant. It provides a reasonable timeframe for assessing the damage, planning repairs, and seeking approval for either rebuilding at the same location or relocating. The stipulation that approval will not be unreasonably withheld offers some assurance that Beggars Pizza will work with the franchisee to find a viable solution.

It is important for a prospective Beggars Pizza franchisee to understand the conditions under which this clause applies. Specifically, the damage must occur through no fault of the franchisee, and the repairs must be such that they cannot be completed within 60 days. If the damage is minor or can be quickly repaired, the standard maintenance obligations would likely apply, as detailed elsewhere in the franchise agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.