Is Beggars Pizza obligated to compensate a franchisee's employees for using their likeness in advertising materials?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.11 Advertising Materials.
Franchisee must ensure that all advertising and promotional materials, signs, decorations, and other items specified by Franchisor bear the Proprietary Marks in the form, color, location, and manner prescribed by Franchisor.
- 7.4.13 To participate in all promotional programs developed by Franchisor for the System including, without limitation, gift card programs, gift certificate programs, loyalty programs, and coupon or discount programs (except as prohibited by applicable law), as prescribed by Franchisor in the Manual or otherwise in writing from time to time including, without limitation, selling and offering for sale gift certificates or gift cards which may be redeemed at any Beggars Pizza® restaurant for menu items or products, permitting customers who purchased gift certificates or gift cards from another Beggars Pizza® restaurant or Franchisor to redeem their gift certificates for menu items or products at the Restaurant, participating in Franchisor's customer complaint program which may require Franchisee to offer free gift certificates at Franchisee's expense to customers complaining about service at the Restaurant, and installing and using the required equipment or information systems necessary to allow customers to participate in System loyalty programs at Franchisee's expense.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
Based on the 2025 Beggars Pizza Franchise Disclosure Document, there is no specific mention of an obligation for Beggars Pizza to compensate a franchisee's employees for the use of their likeness in advertising materials. The FDD outlines various obligations and responsibilities of both the franchisor and franchisee regarding advertising and promotional activities, but it does not address the issue of compensating employees for their likeness.
Item 7.11 states that the franchisee must ensure that all advertising and promotional materials bear the Proprietary Marks in the form, color, location, and manner prescribed by the franchisor. Item 7.4.13 requires franchisees to participate in promotional programs developed by the franchisor. However, these sections do not discuss compensation for employees featured in advertising.
Therefore, a prospective Beggars Pizza franchisee should seek clarification from the franchisor regarding their policies on the use of employee likenesses in advertising and whether any compensation is required or provided in such cases. This information is crucial for understanding potential costs and legal considerations related to advertising and promotion.