Can the payment period for Beggars Pizza product sales be reduced?
Beggars_Pizza Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPT (FDD pages 39–192)
What This Means (2025 FDD)
According to Beggars Pizza's 2025 Franchise Disclosure Document, franchisees typically must pay for product sales within seven days of receiving an invoice. The invoice is provided at the start of each accounting period, which is every seven days from Monday to Sunday. Payment to the supplier, BEGCOM, LLC, must be made each Monday via electronic funds transfer for the previous week's purchases.
However, the FDD stipulates that the supplier has the right to reduce this payment period at their discretion. This means that BEGCOM, LLC can, with written notice to the franchisee, demand payment in a shorter timeframe than the standard seven days.
This clause gives Beggars Pizza and its supplier flexibility in managing cash flow and mitigating risk. For a prospective franchisee, this means they need to be prepared for the possibility of more frequent payments, which could impact their working capital needs. It would be prudent to discuss with the franchisor under what circumstances they might shorten the payment period.