When does the management fee agreement between Beggars Pizza and Begcom, LLC expire?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
de evaluation of events up through and including March 22, 2024, which is the date the financial statements were available to be issued.
2. Related Party Transactions
The Company has a management fee agreement with Begcom, LLC, a related party through common ownership. The agreement expires on December 31, 2028. Management fees totaled $579,820 and $666,106 for the years ended December 31, 2023 and 2022, respectiv
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, the company has a management fee agreement with Begcom, LLC, a related party through common ownership. This agreement is set to expire on December 31, 2028.
In 2023, the management fees totaled $579,820, while in 2022, they amounted to $666,106. As of December 31, 2023, the management fees due to Begcom, LLC were $10,010, and as of December 31, 2022, they were $9,166. These amounts are included in accounts payable on the balance sheet.
This related-party transaction is important for prospective franchisees to understand, as it reveals a financial relationship between Beggars Pizza and another entity. Franchisees should consider how these management fees might affect the overall financial health and stability of the franchise system. It is also worth noting that Begcom, LLC handles commissary orders for franchisees.