Are non-competition provisions applicable to the day-to-day manager of a Beggars Pizza franchise?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT C
CONFIDENTIALITY AND NON-COMPETITION AGREEMENT
(for execution by Franchisee's managers and other personnel having access to Franchisor's Confidential Information)
In consideration of my position as of ("Franchisee"), and One Dollar, receipt of which is acknowledged, I hereby acknowledge and agree that:
Beggars Pizza Franchise, LLC ("Franchisor"), as the result of the expenditure of time, skill, effort, and money, has developed, and continues to develop, a distinctive system relating to the establishment, operation, and promotion of Beggars Pizza® restaurants that offer pizza and other food products and non-alcoholic and alcoholic beverages for sale and consumption on the premises, for carry-out sale to customers, for consumption off the premises, for delivery to customers, for catering, for sale and consumption off the premises at temporary locations for fund raising and other special events, and such sale in such other ways as Franchisor may specify from time to time, all of which may be changed, improved, and further developed by Franchisor from time to time (the "System").
Source: Item 15 — OBLIGATIONS TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISED BUSINESS (FDD page 30)
What This Means (2025 FDD)
According to the 2025 Beggars Pizza Franchise Disclosure Document, Exhibit C outlines a Confidentiality and Non-Competition Agreement that must be executed by the franchisee's managers and other personnel who have access to the franchisor's confidential information. This agreement is in consideration of their position with the franchisee and one dollar.
Beggars Pizza requires this agreement because it has developed a distinctive system relating to the establishment, operation, and promotion of Beggars Pizza restaurants. This system includes offering pizza and other food products, as well as alcoholic and non-alcoholic beverages, for sale and consumption on and off the premises, including delivery, catering, and special events. The franchisor may change, improve, and further develop this system over time.
This agreement ensures that individuals with access to Beggars Pizza's confidential information, such as managers, are bound by non-competition provisions. This is a common practice in franchising to protect the franchisor's business methods, trade secrets, and overall system. Prospective franchisees should carefully review Exhibit C to understand the full scope and implications of the non-competition agreement for their managers and other personnel.