Can Beggars Pizza open restaurants using the Proprietary Marks that might compete with franchisees?

According to Beggars Pizza's 2025 Franchise Disclosure Document, Beggars Pizza, either directly or through affiliated entities, has the right to open Beggars Pizza restaurants using their Proprietary Marks. These restaurants must be in locations that do not infringe upon the rights of existing franchisees. This means that while Beggars Pizza can open company-owned stores, they are restricted from placing them in areas that would violate the territory or customer rights granted to franchisees.

This is a fairly standard practice in franchising, where franchisors often retain the right to operate company-owned locations. These locations can serve multiple purposes, such as testing new products or procedures, providing training facilities, or maintaining a presence in key markets. However, the critical point for a prospective Beggars Pizza franchisee is understanding the specific geographic or customer restrictions that would prevent Beggars Pizza from opening a competing location.

It is important for potential franchisees to carefully review the Franchise Agreement and discuss territory rights with Beggars Pizza during their due diligence. Understanding the scope of these rights is essential for assessing the potential for competition from company-owned stores. Franchisees should inquire about the criteria used to determine whether a location would violate their rights and what recourse they have if they believe Beggars Pizza has breached the agreement.