What is the method of payment required for product purchases by a Beggars Pizza franchisee?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
f loss until the Products are delivered to Franchisee.
- (c) Supplier Invoice; Payment Timing. At the start of each Accounting Period (as defined below), Supplier will provide Franchisee with an invoice (the "Invoice") containing all current amounts due for all Products purchased during the prior Accounting Period. "Accounting Period" means every seven (7) days beginning on Monday and ending on Sunday. Each Monday Franchisee must pay to Supplier all amounts due to Supplier for the previous Monday through Sunday (i.e., the previous Accounting Period) via electronic funds transfer ("EFT") as set forth in Section 3(d) below. Supplier hereby expressly reserves the right to designate such other period (which may include a shorter period) as the Accounting Period that Supplier or Beggars may specify in the Manual or in writing from time to time. Franchisee must pay for all Product sales within seven (7) days of receipt of each Invoice, which time period may be reduced in Supplier's sole discretion upon written notice to Franchisee. All such payments must be made by direct deposit or EFT. If Franchisee fails to pay any Invoice within such period, Supplier will provide Franchisee with notice of such failure and, upon receipt of such notice, Franchisee will have five (5) days to cure such failure. If Franchisee fails to make all required payments within such five (5)-day cure period, Supplier will have the right to immediately terminate the Agreement.
- (d) Bank Account. Franchisee must maintain a designated bank account for the operation of the Beggars Restaurant. Franchisee must deposit all revenues from the operation of the Beggars Restaurant in such bank account within two (2) days of receipt including, without limitation, cash, checks, credit card receipts, or the value of other forms of payment. The designated bank account must be located within the United States and governed by its laws. Upon execution of the Agreement, Franchisee must execute Exhibit B attached hereto and furnish to Supplier the bank and account number, a voided check from such bank account, and written authorization for Supplier to withdraw funds from the bank account via EFT without further consent or authorization for all payments payable by Franchisee to Supplier hereunder. Franchisee must execute any documents as may be necessary to effectuate and maintain the EFT arrangement as required by Supplier. Franchisee must pay all costs associated with any such transfer.
Source: Item 23 — RECEIPT (FDD pages 39–192)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, franchisees are required to pay for product purchases from the designated supplier via electronic funds transfer (EFT) or direct deposit. The supplier will provide an invoice at the start of each accounting period, which is defined as every seven days, running from Monday to Sunday. Franchisees must pay the invoiced amount for the previous accounting period each Monday.
Beggars Pizza's supplier retains the right to modify the accounting period, potentially shortening it, with written notice to the franchisee. The standard payment timeframe is within seven days of receiving the invoice, but the supplier can reduce this period at their discretion with written notification. If a franchisee fails to pay an invoice on time, the supplier will issue a notice, granting a five-day cure period to rectify the payment. Failure to pay within this cure period can result in immediate termination of the franchise agreement.
To facilitate these payments, Beggars Pizza franchisees must maintain a dedicated bank account for their restaurant's operations. All revenues, including cash, checks, and credit card receipts, must be deposited into this account within two days of receipt. Upon signing the agreement, franchisees must provide the supplier with their bank account details, a voided check, and authorization for EFT withdrawals. Franchisees are responsible for covering all costs associated with these electronic transfers. Failure to maintain the required bank account or withdrawing EFT authorization constitutes a breach of the agreement, highlighting the importance of adhering to the specified payment protocols to maintain good standing with Beggars Pizza and its suppliers.