What information must a Beggars Pizza franchisee provide if they change banks or accounts?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee changes banks or accounts for the bank account required by this Section
- 3(d), Franchisee must, prior to such change, provide such information concerning the new account and an authorization to make withdrawals therefrom.
Franchisee's failure to provide such information concerning the bank account required by this Section 3(d) or any new account, or Franchisee's withdrawal of consent to withdrawals for whatever reason and by whatever method, will be a breach of the Agreement.
Source: Item 23 — RECEIPT (FDD pages 39–192)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, if a franchisee changes the bank or account used for payments, they must provide information about the new account and authorization to make withdrawals from it before the change occurs. This requirement is crucial because Beggars Pizza requires franchisees to make all payments to the supplier via electronic funds transfer (EFT).
The FDD emphasizes the importance of maintaining a designated bank account for the Beggars Restaurant operations. Franchisees are obligated to deposit all revenues into this account within two days of receipt, covering all forms of payment like cash, checks, and credit card receipts. The designated bank account must be located within the United States and governed by its laws.
Failure to provide the necessary bank account information or withdrawing consent for electronic fund transfers constitutes a breach of the franchise agreement. Such a breach can lead to suspension of product shipments from the supplier until the issue is resolved. This highlights the necessity for franchisees to adhere strictly to the outlined financial procedures to maintain smooth operations and avoid potential disruptions to their supply of products.