What is the obligation of a Beggars Pizza franchisee regarding the Site Selection Addendum?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
If you do not have an approved location when you sign your Franchise Agreement, you must sign our Site Selection Addendum. Under the Site Selection Addendum, you must acquire a location within 90 days after you sign your Franchise Agreement and begin operations of the Restaurant within 180 days after obtaining an approved location.
You must submit your proposed lease to us for approval. We will only approve a lease if you and the landlord have signed a conditional assignment of lease in the form attached as Exhibit G of the Franchise Agreement which provides that we may assume the lease if you default under your lease or your Franchise Agreement.
Source: Item 12 — TERRITORY (FDD pages 26–28)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, if a franchisee does not have an approved location when signing the Franchise Agreement, they must sign the Site Selection Addendum. This addendum mandates that the franchisee must acquire a location within 90 days after signing the Franchise Agreement.
Furthermore, the franchisee is obligated to begin operations of the Beggars Pizza restaurant within 180 days after obtaining an approved location. This means a franchisee needs to act quickly to find and secure a suitable site that meets Beggars Pizza's approval criteria. The approval is based on factors such as the location's viability and demographics, including the number of households, household income, and vehicular traffic.
Beggars Pizza also requires that the franchisee submit the proposed lease for approval. The lease will only be approved if the franchisee and the landlord have signed a conditional assignment of lease, using the form attached as Exhibit G of the Franchise Agreement. This assignment allows Beggars Pizza to assume the lease if the franchisee defaults under the lease or the Franchise Agreement, providing a level of security for Beggars Pizza. This is a fairly common practice in franchising, as it protects the brand's location and continuity of operations.
In summary, the Site Selection Addendum places specific time-sensitive obligations on the franchisee to secure a location and begin operations, subject to Beggars Pizza's approval and lease assignment requirements. Failing to meet these deadlines could potentially lead to a breach of the franchise agreement.