What is the obligation of a Beggars Pizza franchisee regarding the proposed lease?

According to Beggars Pizza's 2025 Franchise Disclosure Document, a franchisee must submit their proposed lease agreement to Beggars Pizza for approval. Beggars Pizza will only approve the lease if the franchisee and the landlord have signed a conditional assignment of lease, using the form attached as Exhibit G in the Franchise Agreement. This assignment ensures that Beggars Pizza can assume the lease if the franchisee defaults on either the lease agreement or the Franchise Agreement itself.

This requirement is a protective measure for Beggars Pizza, ensuring they can maintain control over the location and continue operations even if a franchisee fails. It also means that prospective franchisees need to ensure that their lease agreements include this conditional assignment clause, which might require negotiation with the landlord. The franchisee bears the responsibility of securing a lease that meets Beggars Pizza's conditions.

This type of requirement is not uncommon in franchising, as franchisors often want to protect their brand and ensure business continuity. By having the ability to assume the lease, Beggars Pizza mitigates the risk of a location becoming vacant and potentially harming the brand's reputation. Franchisees should carefully review Exhibit G and understand the implications of the conditional assignment of lease before signing any agreements.