How much are the marketing fees paid by Beggars Pizza franchisees, and to whom are they paid?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisees receive additional services such as marketing and commissary needs, which are provided by affiliated entities as allowed by the franchise agreement. Marketing fees totaling 1% of the franchisee weekly sales are paid by franchisees directly to Beg Adv, LLC. Commissary stores at each franchisee are ordered and fulfilled with Begcom, LLC.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, franchisees are required to pay marketing fees. These fees amount to 1% of the franchisee's weekly sales. These marketing fees are to be paid directly to Beg Adv, LLC, which appears to be an affiliated entity that handles the marketing services for the Beggars Pizza franchise system.
This marketing fee is in addition to other fees such as the initial franchise fee and ongoing royalty fees. It's important for prospective franchisees to understand that this 1% of weekly sales will be an ongoing expense throughout the term of their franchise agreement. This fee is specifically earmarked for marketing activities, which are presumably intended to benefit the entire Beggars Pizza system by increasing brand awareness and driving customer traffic to individual locations.
Franchisees should inquire about the specific marketing strategies and initiatives funded by these fees. Understanding how Beg Adv, LLC utilizes these funds can help franchisees assess the value they receive from this mandatory contribution. It is also important to understand if these marketing fees are used for local store marketing, regional advertising, or national campaigns, and how these activities are expected to impact their specific location's performance.