Does Beggars Pizza have the obligation to develop or designate computer software programs for franchisees?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.4.2 Franchisor will have the right, but not the obligation, to develop, have developed for it, or designate (a) computer software programs that Franchisee must use in connection with the Computer System (the "Required Software") that Franchisee must install at Franchisee's expense, (b) updates, supplements, modifications, or enhancements to the Required Software that Franchisee must install at Franchisee's expense, (c) the tangible media upon which Franchisee will record data, and (d) the database file structure of the Computer System.
- 8.4.3 At Franchisor's request, Franchisee must purchase or lease, and thereafter maintain, the Computer System and, if applicable, the Required Software. Franchisor may remotely retrieve and use such data and information from Franchisee's Computer System or Required Software that Franchisor deems necessary or desirable at any time. Franchisee expressly agrees to strictly comply with Franchisor's standards and specifications for all items associated with Franchisee's Computer System and any Required Software in accordance with Franchisor's standards and specifications. Franchisee must keep the Computer System in good maintenance and repair and install such additions, changes, modifications, substitutions, and/or replacements to the Computer System or Required Software as Franchisor directs from time to time in writing. Franchisee's compliance with this Section 8.4 will be at Franchisee's sole cost and expense.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, Beggars Pizza does not have the obligation, but does have the right, to develop, have developed for it, or designate computer software programs that franchisees must use in connection with the computer system. These programs are referred to as the "Required Software" and franchisees must install them at their own expense. Beggars Pizza also has the right, but not the obligation, to develop updates, supplements, modifications, or enhancements to the Required Software that franchisees must install at their own expense.
Furthermore, Beggars Pizza has the right to designate the tangible media upon which franchisees will record data, and the database file structure of the computer system. At Beggars Pizza's request, franchisees must purchase or lease, and then maintain, the computer system and, if applicable, the Required Software.
Beggars Pizza may remotely retrieve and use data and information from the franchisee's computer system or Required Software that Beggars Pizza deems necessary or desirable at any time. Franchisees must strictly comply with Beggars Pizza's standards and specifications for all items associated with their computer system and any Required Software, and must keep the computer system in good maintenance and repair, installing any additions, changes, modifications, substitutions, and/or replacements as Beggars Pizza directs in writing. Compliance with these requirements is at the franchisee's sole cost and expense.
This means that while Beggars Pizza is not obligated to create software, they can require franchisees to use specific software, and the franchisee is responsible for all costs associated with the software and computer systems.