What is the minimum royalty fee that a Beggars Pizza franchisee must pay for each Accounting Period?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
ire initial franchise fee is fully earned and non-refundable in consideration of administrative and other expenses incurred by Franchisor in granting this franchise and for Franchisor's lost or deferred opportunity to enter into the Agreement with others.
- 4.2 Royalty Fees. Franchisee must pay to Franchisor for each Accounting Period (described below) a continuing royalty fee in an amount equal to the greater of five percent (5%) of Gross Sales for each Accounting Period or Five Hundred Dollars ($500), which must be paid to Franchisor in accordance with Section 4.6; provided, however, that if applicable law prohibits Franchisee from paying a percentage of revenue from the sale of alcoholic beverages, Franchisee must pay Franchisor for each Accounting Period an amount equal to the greater of six and onehalf percent (6.5%) of Gross Sales (excluding revenues from the sale of alcoholic beverages) for each Accounting Period or Five Hundred Dollars ($500).
- 4.3 Gross Sales; Accounting Period. "Gross Sales" means all revenues generated from sales of all products and services conducted at, from, or with respect to the Restaurant whether such sales are evidenced by cash, check, credit, charge, account, gift cards, loyalty cards, barter, or exchange, and any proceeds from business interruption insurance coverage. Gross Sales will not include the sale of products or services for which refunds have been made in good faith to customers, the sale of equipment or furnishings used in the operation of the Restaurant, revenue derived from the sale or issuance of System gift or loyalty cards (although revenue derived from the sale of products and services paid for with gift or loyalty cards is included), any reduction in revenue due to discounts or coupon sales, any sales taxes or other taxes collected from customers by Franchisee and paid directly to the appropriate taxing authority. "Accounting Period" means every seven (7) days be
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, franchisees are required to pay a royalty fee for each accounting period. The royalty fee is the greater of 5% of gross sales or $500. However, if applicable law prohibits a franchisee from paying a percentage of revenue from the sale of alcoholic beverages, the franchisee must pay the greater of 6.5% of gross sales (excluding revenues from the sale of alcoholic beverages) or $500 for each accounting period.
Gross sales include all revenues generated from sales of all products and services conducted at, from, or with respect to the restaurant, whether such sales are evidenced by cash, check, credit, charge, account, gift cards, loyalty cards, barter, or exchange, and any proceeds from business interruption insurance coverage. Gross sales do not include the sale of products or services for which refunds have been made in good faith to customers, the sale of equipment or furnishings used in the operation of the restaurant, revenue derived from the sale or issuance of system gift or loyalty cards (although revenue derived from the sale of products and services paid for with gift or loyalty cards is included), any reduction in revenue due to discounts or coupon sales, or any sales taxes or other taxes collected from customers by the franchisee and paid directly to the appropriate taxing authority.
An accounting period is defined as every seven days, beginning on Monday and ending on Sunday. Franchisees must pay all amounts due to Beggars Pizza for the previous Monday through Sunday (i.e., the previous accounting period) each Monday via electronic funds transfer.