Can the payment period for product sales be reduced for my Beggars Pizza franchise?
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, the standard payment terms require franchisees to pay for product sales within seven days of receiving an invoice. The invoice is provided at the start of each accounting period, which is defined as every seven days, from Monday to Sunday. Payment to the supplier, BEGCOM, LLC, must be made each Monday for the previous Monday through Sunday period via electronic funds transfer (EFT).
However, BEGCOM, LLC, as the supplier, retains the right to modify this payment period. Specifically, the FDD states that the supplier can reduce the payment timeframe at its sole discretion, provided they give written notice to the franchisee. This means that while the standard payment term is seven days, BEGCOM, LLC could demand payment more quickly.
This clause gives BEGCOM, LLC significant control over cash flow for Beggars Pizza franchisees. A prospective franchisee should consider the potential impact of a reduced payment period on their working capital and discuss this possibility with existing franchisees to understand how often BEGCOM, LLC exercises this option and under what circumstances.