What is the minimum monthly expenditure required for local advertising and promotion for a Beggars Pizza franchise after the first three months of operation?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, after the first three months of operation, a franchisee is required to spend a minimum amount on local marketing, advertising, and promotion. This amount is equivalent to at least two percent of the franchisee's gross sales from the previous month.
This ongoing monthly expenditure is a crucial aspect of maintaining brand visibility and attracting customers in the local market. It ensures that each Beggars Pizza location actively promotes its presence and offerings within its community. The amount spent can fluctuate based on the store's sales performance.
It's important to note that this local advertising expenditure is separate from the grand opening advertising and promotion, which requires a minimum spend of $10,000 within the first 30 days. Additionally, franchisees must also contribute one percent of their gross sales to the Brand Fund, which supports system-wide advertising and promotional efforts. Therefore, franchisees need to budget for these separate advertising expenses: grand opening, ongoing local advertising, and the Brand Fund contribution.
Beggars Pizza franchisees must also adhere to the franchisor's guidelines and obtain approval for all advertising and promotional materials to ensure brand consistency. This includes submitting samples of advertising plans and materials to the franchisor for approval, and using pre-approved advertising materials when provided.