Is the license of the Proprietary Marks granted to the Beggars Pizza franchisee exclusive?

According to Beggars Pizza's 2025 Franchise Disclosure Document, the license of the Proprietary Marks granted to the franchisee is nonexclusive, as specified in Section 1.3. This means that Beggars Pizza retains the right to use the Proprietary Marks in connection with selling products and services, grant other licenses for the Proprietary Marks, develop and establish other systems using the Proprietary Marks, similar proprietary marks, or any other proprietary marks, and grant licenses thereto without providing any rights to the franchisee.

This non-exclusive license has several implications for a prospective Beggars Pizza franchisee. Beggars Pizza and its affiliates can operate or license others to operate Beggars Pizza restaurants outside the franchisee's territory. They can also accept delivery orders and deliver products within the franchisee's territory, and establish Beggars Pizza restaurants within the franchisee's territory at locations such as shopping malls, airports, transportation terminals, entertainment facilities, and rest stops accessible from limited access highways.

Furthermore, Beggars Pizza retains the right to sell or distribute products similar to those offered under the Beggars Pizza system at other locations, such as supermarkets, convenience stores, and over the Internet, regardless of their proximity to the franchisee's location. Beggars Pizza also has the right to modify, add to, or discontinue the use of the Proprietary Marks, or substitute different proprietary marks, at its sole discretion, and the franchisee must comply with these changes at their own cost.

While the license is non-exclusive, Beggars Pizza does provide a limited territorial protection. Except as otherwise provided in the agreement, Beggars Pizza will not establish or operate, nor license any other person to establish or operate, a Beggars Pizza restaurant under the System and the Proprietary Marks at any location within the territory described in Exhibit A during the term of the agreement. This territorial protection has several exceptions, as noted above.