Who maintains and administers the Beggars Pizza Brand Fund?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
one percent (1%) of Franchisee's Gross Sales from the preceding Accounting Period. Such contributions to the Brand Fund will be in addition to any expenditures made pursuant to Sections 12.1 and 12.2 hereof and must be made in accordance with Sections 4.5 and 4.6 hereof.
- 12.5 Brand Fund. The Brand Fund will be maintained and administered by Franchisor or its affiliate as follows:
- 12.5.1 Franchisor or its affiliate will direct all advertising programs, with sole discretion over the concepts, materials, and media used in such programs and the placement and allocation thereof. Franchisee agrees and acknowledges that the Brand Fund is intended to maximize general public recognition, acceptance, and use of the System and that Franchisor or its
affiliate is not obligated while administering the Brand Fund to make expenditures for Franchisee that are equivalent or proportionate to Franchisee's contributions or to ensure that any particular franchisee benefits directly or indirectly from expenditures by the Brand Fund.
12.5.2 The Brand Fund, all contributions thereto, and any earnings thereon, will be used exclusively to meet any costs of maintaining, administering, directing, conducting and preparing advertising, marketing, public relations, and/or promotional programs and materials, and any other activities which Franchisor or its affiliate believes will enhance the image of the System including, without limitation, the costs of preparing and conducting radio, cable television, print, and Internet-based advertising campaigns; utilizing Networking Media Sites and other emerging media or promotional tactics; developing, maintaining, and updating a Website on the Internet; review of locally produced advertisements; door hangers, mailers, inserts and coupons; brochures and promotional materials; market research, market surveys, and sponsorships; web site design and maintenance; public relations and related retainers; mystery shoppers for the System and competitors;
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Beggars Pizza Franchise Disclosure Document, the Brand Fund is maintained and administered by Beggars Pizza or its affiliate. Beggars Pizza or its affiliate has sole discretion over all advertising programs, including the concepts, materials, media used, and the placement and allocation of these resources.
The funds contributed by franchisees are intended to maximize public recognition and acceptance of the Beggars Pizza system. Beggars Pizza is not obligated to make expenditures for a franchisee that are equivalent or proportionate to the franchisee's contributions, nor does it ensure that any franchisee benefits directly or indirectly from the Brand Fund's expenditures.
The sums paid into the Brand Fund are kept in a separate account from Beggars Pizza's other monies and are not used to defray Beggars Pizza's expenses, except for reasonable costs and overhead incurred in directing and implementing advertising programs. The Brand Fund and its earnings do not benefit Beggars Pizza or its affiliate, and Beggars Pizza maintains separate bookkeeping accounts for the Brand Fund. Beggars Pizza has formed an affiliated entity to control and administer the Brand Fund, but neither Beggars Pizza nor its affiliate is a fiduciary to the franchisee of the monies in the Brand Fund.