What is the obligation of a franchisee regarding the initial franchise fee when signing the Franchise Agreement for a Beggars Pizza?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
IAL FEES**
You must pay us an initial franchise fee of $25,000 for a Beggars Pizza® Restaurant with 150 or fewer seats and $40,000 for a Beggars Pizza® Restaurant with more than 150 seats. The entire initial franchise fee is due when you sign your Franchise Agreement. If you open a second Beggars Pizza® Restaurant with an identical ownership group with each owner having identical ownership interests, we will reduce the initial franchise fee by 50%. The initial franchise fee is fully earned upon receipt and not refundable.
If you are signing your Franchise Agreement to renew your existing franchise, you must sign the Renewal Addendum attached to this disclosure document as Exhibit J and pay a renewal fee as prescribed in your expiring Franchise Agreement when you sign your new Franchise Agreement in lieu of the initial franchise fee descri
Source: Item 5 — INITIAL FEES (FDD pages 8–9)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, a new franchisee must pay an initial franchise fee when signing the Franchise Agreement. The amount of this fee depends on the size of the restaurant. For a Beggars Pizza restaurant with 150 or fewer seats, the initial franchise fee is $25,000. For a restaurant with more than 150 seats, the fee is $40,000.
The entire initial franchise fee is due when the franchisee signs the Franchise Agreement. This fee is considered fully earned by Beggars Pizza upon receipt and is non-refundable. This means that even if the franchise does not open or the agreement is terminated, the franchisee will not receive a refund of the initial franchise fee.
There is an exception to the standard initial franchise fee for existing franchisees. If a franchisee is opening a second Beggars Pizza restaurant with an identical ownership group (with each owner having identical ownership interests), the initial franchise fee is reduced by 50%. Additionally, if a franchisee is signing a Franchise Agreement to renew their existing franchise, they must sign the Renewal Addendum and pay a renewal fee as prescribed in their expiring Franchise Agreement instead of the initial franchise fee.