factual

What is the minimum amount a Beggars Pizza franchisee must spend on grand opening advertising and promotion?

Beggars_Pizza Franchise · 2025 FDD

Answer from 2025 FDD Document

follows:

  • 12.1 Grand Opening Advertising. At least forty-five (45) days prior to the opening of the Restaurant, Franchisee must prepare and submit to Franchisor for its approval a grand opening advertising and promotional program in the form and manner prescribed by Franchisor in writing. Franchisee must expend at least Ten Thousand Dollars ($10,000) on such grand opening advertising and promotion within thirty (30) days after the opening of the Restaurant.
  • 12.2 Local Advertising and Promotion. During the term of the Agreement, except for the first three calendar months of operation of the Restaurant, Franchisee must expend, on a monthly basis, an amount equal to at least two percent (2%) of Franchisee's Gross Sales from the previous month on local marketing, advertising, and promotion. Notwithstanding the foregoing, Franchisee must expend at least Three Thousand Dollars ($3,000) on local marketing, advertising, and promotion during each of the first three (3) calendar months that the Restaurant is open, with the first month prorated if the Restaurant is open for only a partial month. All local marketing, advertising, and promotion must be conducted in such manner as Franchisor may, in its sole discretion, direct in the Manual or otherwise in writing.
  • 12.3 Verification of Advertising Expenditures.

Source: Item 22 — CONTRACTS (FDD page 39)

What This Means (2025 FDD)

According to Beggars Pizza's 2025 Franchise Disclosure Document, a new franchisee must spend a minimum of $10,000 on grand opening advertising and promotion. This expenditure must occur within the first 30 days after the restaurant opens.

Prior to opening, at least 45 days in advance, the franchisee is required to prepare and submit a grand opening advertising and promotional program to Beggars Pizza for approval. This ensures that the advertising aligns with the brand's standards and image.

In addition to the grand opening advertising, Beggars Pizza franchisees must also allocate funds for ongoing local marketing, advertising, and promotion. Except for the first three calendar months of operation, franchisees must spend at least 2% of the previous month's gross sales on local advertising. However, during each of the first three months, the minimum expenditure is $3,000, with the first month prorated if the restaurant is not open for the entire month. This ongoing investment helps maintain visibility and attract customers to the Beggars Pizza location.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.