What is included in Exhibit G of the Beggars Pizza Franchise Agreement?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
You must submit your proposed lease to us for approval. We will only approve a lease if you and the landlord have signed a conditional assignment of lease in the form attached as Exhibit G of the Franchise Agreement which provides that we may assume the lease if you default under your lease or your Franchise Agreement.
Source: Item 12 — TERRITORY (FDD pages 26–28)
What This Means (2025 FDD)
According to the 2025 Beggars Pizza Franchise Disclosure Document, Exhibit G of the Franchise Agreement contains the conditional assignment of lease form. This form is signed by both the franchisee and the landlord. It stipulates that Beggars Pizza has the right to assume the lease if the franchisee defaults on either the lease agreement or the Franchise Agreement itself.
This is a fairly standard practice in franchising, as it protects the franchisor's interest in maintaining a location for a Beggars Pizza restaurant. By having the right to assume the lease, Beggars Pizza can ensure that the location remains operational, even if the franchisee is unable to continue operating the business. This protects the brand's presence and customer base in that territory.
For a prospective Beggars Pizza franchisee, this means that they must ensure their lease agreement includes this conditional assignment clause. They should carefully review the terms of the lease and the Franchise Agreement to understand the conditions under which Beggars Pizza could assume the lease. It is advisable to seek legal counsel to fully understand the implications of this clause before signing the Franchise Agreement and the lease.