Does a Beggars Pizza manager need to have an equity interest in the franchise?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Exhibit G contains a list with the name of all current franchisees and the addresses and telephone numbers of their Beggars Pizza® Restaurants as of the date of this disclosure document, and the current list of affiliate-owned Beggars Pizza® Restaurants.
Exhibit H contains a list of the name, city, state, and current business telephone number, or if unknown, the last known home telephone number, of each franchisee whose franchise was transferred, terminated, canceled, not renewed, or otherwise voluntarily or involuntarily ceased to do business under a Franchise Agreement during the most recently completed fiscal year, or who has not communicated with us within 10 weeks of the date of this disclosure document. If you buy this franchise, your contact information may be disclosed to other buyers when you leave the franchise system.
In the last three fiscal years, we have not entered into any agreements with franchisees that contain confidentiality clauses restricting their ability to communicate with you. There are currently no trademark-specific franchisee organizations that have been created, sponsored, or endorsed by us. No trademark-specific franchisee organizations associated with the Beggar's Pizza system have asked us to include information about them in our current disclosure document.
EXHIBIT C
CONFIDENTIALITY AND NON-COMPETITION AGREEMENT
(for execution by Franchisee's managers and other personnel having access to Franchisor's Confidential Information)
In consideration of my position as of ("Franchisee"), and One Dollar, receipt of which is acknowledged, I hereby acknowledge and agree that:
Beggars Pizza Franchise, LLC ("Franchisor"), as the result of the expenditure of time, skill, effort, and money, has developed, and continues to develop, a distinctive system relating to the establishment, operation, and promotion of Beggars Pizza® restaurants that offer pizza and other food products and non-alcoholic and alcoholic beverages for sale and consumption on the premises, for carry-out sale to customers, for consumption off the premises, for delivery to customers, for catering, for sale and consumption off the premises at temporary locations for fund raising and other special events, and such sale in such other ways as Franchisor may specify from time to time, all of which may be changed, improved, and further developed by Franchisor from time to time (the "System").
Source: Item 15 — OBLIGATIONS TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISED BUSINESS (FDD page 30)
What This Means (2025 FDD)
The 2025 Beggars Pizza Franchise Disclosure Document does not specify any requirement for a manager to have an equity stake in a franchise. However, the FDD does mention a Confidentiality and Non-Competition Agreement that Beggars Pizza requires a franchisee's managers and other personnel to sign if they have access to the franchisor's confidential information. This agreement ensures the protection of Beggars Pizza's system and trade secrets.
While the FDD does not mandate equity for managers, it does outline the equity structure of Beggars Pizza Franchise, LLC itself. The company has Class A, B, and C member units. Class A is wholly owned by BPF Holding Corporation, while Class B and C units are profits interest units that vest under certain conditions. This internal equity structure does not directly impact the equity requirements, if any, for managers at individual franchise locations.
Because the FDD does not explicitly address whether a Beggars Pizza manager needs to have an equity interest in the franchise, prospective franchisees should directly ask the franchisor about their policies or expectations regarding manager equity. This information is crucial for understanding the full scope of operational requirements and potential incentives for key personnel.