What payment method is required for product purchases for my Beggars Pizza franchise?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
f loss until the Products are delivered to Franchisee.
- (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.
Source: Item 23 — RECEIPT (FDD pages 39–192)
What This Means (2025 FDD)
According to the 2025 Beggars Pizza Franchise Disclosure Document, franchisees are required to pay for all product purchases via electronic funds transfer (EFT) or direct deposit. The supplier will provide an invoice at the start of each accounting period, which is defined as every seven days, from Monday to Sunday. Franchisees must pay the invoiced amount for the previous Monday through Sunday by the following Monday.
Beggars Pizza franchisees must maintain a designated bank account for all restaurant operations. All revenues, including cash, checks, and credit card receipts, must be deposited into this account within two days of receipt. This bank account must be located within the United States and governed by its laws. Upon signing the agreement, franchisees must provide the bank account number, a voided check, and written authorization allowing the supplier to withdraw funds via EFT for all payments.
The supplier reserves the right to modify the accounting period or shorten the payment timeframe with written notice to the franchisee. Failure to pay invoices within the specified period will result in a notice of failure to cure, granting the franchisee five days to rectify the payment. Failure to make the required payments within this cure period may lead to the immediate termination of the agreement. Additionally, the supplier may suspend product shipments or require cash-on-delivery payments for future shipments if payments are not made on time.
If a franchisee changes banks or accounts, they must provide the new account information and authorization for withdrawals before the change. Failure to provide this information or withdrawing consent for EFT withdrawals constitutes a breach of the agreement. Franchisees are responsible for all costs associated with these electronic transfers. This system ensures timely payments and maintains a consistent payment process between the franchisee and the supplier.