Does Beggars Pizza have the option to acquire a franchisee's lease upon termination?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
- 16.4 Assignment of Lease. Franchisee must, at Franchisor's option, assign to Franchisor any interest which Franchisee has in any lease or sublease for the Premises. If Franchisor does not elect to exercise its option to acquire the lease or sublease for the Premises, Franchisee must make such modifications or alterations to the premises immediately upon termination or expiration of the Agreement as may be necessary to distinguish the appearance of the premises from that of the Restaurant under the System, and must make such specific additional changes thereto as Franchisor may reasonably request for that purpose. If Franchisee fails or refuses to comply with the requirements of this Section 16.4, Franchisor will have the right to enter upon the premises
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, upon termination or expiration of the Franchise Agreement, Beggars Pizza has the option to acquire the franchisee's lease. Specifically, the franchisee must, at Beggars Pizza's option, assign to Beggars Pizza any interest the franchisee has in any lease or sublease for the premises.
If Beggars Pizza does not exercise its option to acquire the lease, the franchisee must modify or alter the premises immediately upon termination or expiration of the agreement. These modifications should distinguish the appearance of the premises from that of a Beggars Pizza restaurant. The franchisee must also make any specific additional changes that Beggars Pizza may reasonably request for that purpose.
If the franchisee fails or refuses to comply with these requirements, Beggars Pizza has the right to enter the premises to make the required changes. This clause ensures that upon termination, the franchisee cannot continue to operate a similar business at the same location without clearly differentiating it from the Beggars Pizza brand, protecting Beggars Pizza's brand identity and market position.