factual

How often must a Beggars Pizza franchisee submit verification of advertising expenditures?

Beggars_Pizza Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 12.3 Verification of Advertising Expenditures.

Franchisee must submit verification of the expenditures required by Sections 12.1 and 12.2 hereof, along with verification of the addresses to which any hard copy advertisements were delivered, mailed, or directed, to Franchisor in the form and manner prescribed by Franchisor in the Manual or otherwise in writing from time to time.

Source: Item 22 — CONTRACTS (FDD page 39)

What This Means (2025 FDD)

According to Beggars Pizza's 2025 Franchise Disclosure Document, franchisees are required to verify their advertising expenditures. Specifically, Beggars Pizza franchisees must submit verification of expenditures required by Sections 12.1 and 12.2 of the franchise agreement. This verification must include documentation of the addresses to which any hard copy advertisements were delivered, mailed, or directed.

The verification must be submitted to Beggars Pizza in the format and manner that Beggars Pizza prescribes in its manual or otherwise in writing from time to time. This means that the exact method and frequency of submitting this verification can be changed by Beggars Pizza, and franchisees must stay updated on these requirements.

Section 12.1, not quoted here, likely refers to grand opening advertising. Section 12.2 states that, except for the first three calendar months of operation, franchisees must spend at least 2% of the previous month's gross sales on local marketing, advertising, and promotion. During each of the first three months, the franchisee must spend at least $3,000 on local advertising. Therefore, franchisees must be prepared to regularly document and report these advertising expenses to Beggars Pizza, adhering to their specified format and schedule.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.