How must I pay for the products purchased for my Beggars Pizza franchise?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Supplier Invoice; Payment Timing.
At the start of each Accounting Period (as defined below), Supplier will provide Franchisee with an invoice (the "Invoice") containing all current amounts due for all Products purchased during the prior Accounting Period. "Accounting Period" means every seven (7) days beginning on Monday and ending on Sunday.
Each Monday Franchisee must pay to Supplier all amounts due to Supplier for the previous Monday through Sunday (i.e., the previous Accounting Period) via electronic funds transfer ("EFT") as set forth in Section 3(d) below.
Supplier hereby expressly reserves the right to designate such other period (which may include a shorter period) as the Accounting Period that Supplier or Beggars may specify in the Manual or in writing from time to time.
Franchisee must pay for all Product sales within seven (7) days of receipt of each Invoice, which time period may be reduced in Supplier's sole discretion upon written notice to Franchisee.
All such payments must be made by direct deposit or EFT.
If Franchisee fails to pay any Invoice within such period, Supplier will provide Franchisee with notice of such failure and, upon receipt of such notice, Franchisee will have five (5) days to cure such failure.
If Franchisee fails to make all required payments within such five (5)-day cure period, Supplier will have the right to immediately terminate the Agreement.
- (d) Bank Account.
Franchisee must maintain a designated bank account for the operation of the Beggars Restaurant.
Franchisee must deposit all revenues from the operation of the Beggars Restaurant in such bank account within two (2) days of receipt including, without limitation, cash, checks, credit card receipts, or the value of other forms of payment.
The designated bank account must be located within the United States and governed by its laws.
Upon execution of the Agreement, Franchisee must execute Exhibit B attached hereto and furnish to Supplier the bank and account number, a voided check from such bank account, and written authorization for Supplier to withdraw funds from the bank account via EFT without further consent or authorization for all payments payable by Franchisee to Supplier hereunder.
Franchisee must execute any documents as may be necessary to effectuate and maintain the EFT arrangement as required by Supplier.
Franchisee must pay all costs associated with any such transfer.
If Franchisee changes banks or accounts for the bank account required by this Section
- 3(d), Franchisee must, prior to such change, provide such information concerning the new account and an authorization to make withdrawals therefrom.
Franchisee's failure to provide such information concerning the bank account required by this Section 3(d) or any new account, or Franchisee's withdrawal of consent to withdrawals for whatever reason and by whatever method, will be a breach of the Agreement.
- (e) Suspension of Product Shipments.
If Franchisee fails to make any payment in full to Supplier when due, Supplier may, without limitation: (a) suspend or refuse shipment to Franchisee of additional Products until such payment has been made, and (b) require payment for any future shipments of Products to be made on a cash-on-delivery basis.
Source: Item 23 — RECEIPT (FDD pages 39–192)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, franchisees are required to pay for all product sales within seven days of receiving each invoice. However, Beggars Pizza's supplier retains the right to shorten this payment period with written notice. All payments must be made via direct deposit or electronic funds transfer (EFT).
Each week, the Beggars Pizza supplier will provide an invoice containing the amounts due for products purchased during the prior accounting period. The accounting period is defined as every seven days, running from Monday to Sunday. Franchisees must pay all amounts due for the previous Monday through Sunday via EFT each Monday. Franchisees must maintain a designated bank account in the United States for Beggars Restaurant operations and deposit all revenues into this account within two days of receipt.
Upon signing the product purchase agreement, franchisees must complete Exhibit B, providing the bank and account number, a voided check, and written authorization for the supplier to withdraw funds via EFT without further consent. Franchisees are responsible for all costs associated with these transfers and must update the supplier with new bank account information if changes occur. Failure to provide or maintain this information constitutes a breach of the agreement. If a franchisee fails to make timely payments, the supplier may suspend product shipments or require cash-on-delivery payments for future orders.
This payment structure ensures a consistent and reliable payment process for product purchases, but it also places a significant responsibility on the franchisee to maintain accurate records and manage their cash flow effectively. The potential for a shortened payment period and the risk of suspended shipments for late payments highlight the importance of diligent financial management for a Beggars Pizza franchisee.