How long does a Beggars Pizza franchisee have to apply for approval to relocate or reconstruct the restaurant after damage or destruction?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
- 15.2.3 If Franchisee at any time ceases to operate or otherwise abandons the Restaurant, or loses the right to possession of the Premises, or otherwise forfeits the right to do or transact business in the jurisdiction where the Restaurant is located.
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 Beggars Pizza's 2025 Franchise Disclosure Document, a franchisee has a limited time frame to act if their restaurant is damaged or destroyed. Specifically, if the damage or destruction is such that repairs or reconstruction cannot be completed within 60 days, the franchisee has only 30 days after the event to apply for Beggars Pizza's approval to relocate and/or reconstruct the restaurant.
This requirement is conditional; it only applies if the damage or destruction was not the franchisee's fault. If the damage was due to the franchisee's negligence or intentional actions, this clause might not be applicable, and other terms of the franchise agreement could come into effect, potentially leading to termination or other penalties.
It's also important to note that even if the franchisee applies within the 30-day window, Beggars Pizza retains the right to approve or disapprove the relocation or reconstruction. However, the FDD states that approval will not be unreasonably withheld. This suggests that Beggars Pizza will consider the franchisee's request and provide a reasonable justification if they deny the application. Franchisees should ensure they document the damage, communicate promptly with Beggars Pizza, and follow all required procedures to maximize their chances of approval.
This clause provides a degree of protection for franchisees facing unforeseen disasters, but it also places a strict timeline on their response. Franchisees need to be aware of this requirement and prepared to act quickly to protect their investment and maintain their franchise rights.