What is the maximum charge a Beggars Pizza franchisee must pay for the evaluation and testing of a proposed supplier?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
All products sold or offered for sale at the Restaurant, and other products, materials, supplies, paper goods, fixtures, furnishings, and equipment used or sold at the Restaurant, must meet Franchisor's then-current standards and specifications, as established in the Manual or otherwise in writing.
Except as provided in Section 7.3 and Section 7.4.3, Franchisee must purchase all food items, ingredients, supplies, materials, and other products and equipment used or offered for sale at the Restaurant for which Franchisor has established standards or specifications solely from Franchisor, an affiliate of Franchisor, or suppliers (including manufacturers, distributors, and other sources) designated by Franchisor that demonstrate to the continuing reasonable satisfaction of Franchisor the ability to meet Franchisor's standards and specifications, who possess adequate quality controls and capacity to supply Franchisee's needs promptly and reliably, and who have been approved by Franchisor in the Manual or otherwise in writing.
Franchisor may require Franchisee to purchase any approved products, equipment, and merchandise solely from Franchisor or an affiliate of Franchisor.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
The 2025 Beggars Pizza Franchise Disclosure Document does not specify a maximum charge that a franchisee must pay for the evaluation and testing of a proposed supplier. However, Section 7.7 outlines the criteria for supplier approval, stating that suppliers must demonstrate the ability to meet Beggars Pizza's standards and specifications to the franchisor's satisfaction.
While the FDD does not provide a specific cost, it indicates that franchisees may incur expenses related to ensuring their suppliers meet Beggars Pizza's standards. This could include costs associated with testing, evaluations, or other assessments required for supplier approval.
A prospective Beggars Pizza franchisee should inquire with the franchisor about the typical costs associated with the evaluation and approval process for new suppliers. Understanding these potential costs is crucial for budgeting and maintaining compliance with Beggars Pizza's standards.