Does Beggars Pizza have the option to acquire a franchisee's lease upon termination or expiration?
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 for the premises. Specifically, the franchisee must assign any interest in the lease or sublease to Beggars Pizza if Beggars Pizza chooses to exercise this option.
If Beggars Pizza does not elect to acquire the lease, the franchisee is obligated to modify or alter the premises immediately after termination or expiration to differentiate its appearance from a Beggars Pizza restaurant. These changes must be sufficient to distinguish the location from the Beggars Pizza system, and the franchisee must make any additional changes reasonably requested by Beggars Pizza for this purpose.
Should the franchisee fail to comply with these requirements, Beggars Pizza retains the right to enter the premises to make the necessary modifications. This provision ensures that upon termination or expiration, the franchisee cannot continue to operate a similar business that might be confused with Beggars Pizza, and it protects Beggars Pizza's brand and image.