Does Beggars Pizza negotiate purchase arrangements with approved or designated suppliers?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
We negotiate purchase arrangements with some or all of our approved or designated suppliers and we may receive money or other benefits from approved or designated suppliers as a result of your purchases. As of the date of this disclosure document, there are no purchasing or distribution cooperatives. We do not provide material benefits to you based on your purchase of particular products or services or your use of designated or approved suppliers, other than the benefit of our negotiated pricing, but we may terminate your Franchise Agreement if you purchase from unapproved sources in violation of your Franchise Agreement.
We estimate that 95% of your expenditures for leases and purchases in establishing the Restaurant and on an ongoing basis will be for goods and services that are subject to sourcing restrictions (that is, for which suppliers must be approved by us or which must meet our standards or specifications).
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 15–18)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, Beggars Pizza does negotiate purchase arrangements with some of its approved or designated suppliers. As a result of franchisee purchases, Beggars Pizza may also receive money or other benefits from these suppliers. However, as of the date of the Franchise Disclosure Document, there are no purchasing or distribution cooperatives.
While Beggars Pizza negotiates pricing with suppliers, it does not provide material benefits to franchisees based on their purchase of particular products or services from designated or approved suppliers, other than the benefit of the negotiated pricing. However, a franchisee's agreement can be terminated if they purchase from unapproved sources in violation of the Franchise Agreement.
The FDD states that approximately 95% of a franchisee's expenditures for leases and purchases in establishing the Restaurant and on an ongoing basis will be for goods and services that are subject to sourcing restrictions. This means franchisees must obtain approval from Beggars Pizza for suppliers or ensure that the goods and services meet Beggars Pizza's standards and specifications.